Can you invest $ 200 in penny stocks or what you call microcaps and make that investment reach something like $ 100,000 or even $ 1 million over the next few years? A lot of people don’t think of microcaps as a serious investment. There is some truth to this. But do you know a guy who turned $ 1,000 into $ 1 million in just 1 month with penny stocks in just 38 trades! Or do you know the person known as the billionaire Penny Stock?
So why microcaps? There are thousands of stocks in markets like tech, agriculture, health, commodities, energy and more. But what makes penny stocks different from normal stocks is that they are very cheap. Most of these microcaps are traded for as little as $ 0.1 per share.
Imagine, discovering a stock costing $ 0.1 per share that skyrockets to $ 10 per share in a matter of weeks, say. That’s a 10,000% gain. So with microcaps you have the potential for an explosive earning and with a price as low as pennies to dollars small investors can play with it too.
Now the problem with most stocks is that they take too long to show appreciation. For a stock to go from $ 50 per share to $ 100 per share, it can take a few years. But a stock listed $ 1 per share can easily double overnight. Hey, it’s only a dollar.
So, with stocks listed in pennies, you can get lightning fast and 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 into $ 1,000! Those $ 1,000 into $ 10,000. Those $ 10,000 into $ 100,000. You have the picture.
Over the past decades, penny stocks have steadily outperformed common stocks by huge margins. In 1939, John Templeton bought 100 shares of each company trading for less than $ 1 per share. Over the next few years, his investment multiplied by several, even though many companies in which he had invested went bankrupt.
This shows that the profitability of stocks quoted in cents. John Templeton eventually retired as a billionaire and spent the rest of his days in sunny Bahamas carefree. John Templeton was a graduate of Yale and was a pioneer in investing in globally diversified mutual funds. But his success had started from his plan to buy 100 shares of each company before trading $ 1 per share.