Can you invest $200 in penny stocks or what you call microcaps and grow that investment into something like $100,000 or even $1M over the next few years? Many people don’t consider microcaps to be serious investments. There is some truth in that. But do you know a guy who turned $1000 into $1M in just 1 month with penny stocks in just 38 trades! Or do you know the person known as Penny Stock Billionaire?
So why microcaps? There are thousands of stocks in markets like technology, agriculture, healthcare, commodities, energy and more. But what makes penny stocks different from normal stocks is that they are very cheap. Most of these microcaps trade for as little as $0.1 per share.
Imagine, discovering a stock costing $0.1 per share skyrocketing to $10 per share in, say, a few weeks. That’s a gain of 10,000%. So with microcaps you have the potential for explosive gain and with a price as low as pennies to a few dollars small investors can play with them too.
Now, the problem with most stocks is that they take too long to show a capital gain. For a stock to go from $50 per share to $100 per share, it can take a few years. But a stock priced at $1 per share can easily double overnight. Hey, it’s only a dollar.
So, with penny stocks, you can get rich at lightning speed and also get poor at the same speed if you don’t invest in them carefully. The best way to invest in penny stocks is to start with $200. Turn that $200 to $1,000! That $1000 into $10,000. That $10,000 into $100,000. You have the picture.
Over the past few decades, penny stocks have consistently outperformed common stocks by huge margins. In 1939, John Templeton purchased 100 shares of each company trading at less than $1 per share. Over the next few years, his investment grew many times over, even though many companies he had invested in went bankrupt.
This shows the profitability of penny stocks. John Templeton finally retired as a billionaire and spent the rest of his days in the sunny, carefree Bahamas. John Templeton was a Yale graduate and was a pioneer in globally diversified mutual fund investing. But his success had started with his plan to buy 100 shares of each company trading before $1 per share.