I was getting tired of loosing small increments of money that when added up was thousands of dollars.   I went back to the basics and researched methods on finding under valued stocks with a huge potential on the upside.  The research was too tedious since I still have a day time job.  Plus, I still seemed loose money on my own picks.  After sifting through reams of information, I did a Google search for advice on penny stock lists and I discovered the  Microcap Millionaires newsletter .

There was no risk trying out the newsletter since it offered a 100% money back guarantee. Being the skeptic that I am, I paid for the newsletter and canceled after a week and got all my money back. I then used the advice for free and made about $50 on a trade that I invested $100 in.   It was not a large dollar amount, but the 50% return peaked my curiosity.  It almost seemed too easy. I purchased another hot stock and barely broke even.  I actually lost $8 after I factored in the commission.  I bought another stock and made another $25.  I had no more tips since  I had canceled the newsletter.

I took the newsletter for another 60 day trial and again I made a few hundred by only investing less than $100.   What it did was give me a list of penny stocks to watch on a weekly and monthly basis.  The penny stock picks were turning out to be great and I was hooked.  Click on the link below if you want to see the exact penny stock trading lists that I am using.  I subscribe to 2 different services.  There are times when both services have a few identical picks.

Click here to get more information about the Micro-Cap Millionaires Newsletter

Click her to go to the Penny Stock Prophet website

Micro-cap stocks or better known as penny stocks are a great way for someone with limited capital to play the stock markets like the big boys on Wall Street without risking everything.  Somehow you ended up on my site because you know that it is not a secret that penny stock fortunes are made every day. The trouble is you have to sift through all the “junk” out there and determine what is real or inflated hyperbole.

I can write a laundry list of all the stupid things that I have tried and lost money at. You will probably laugh and wonder what I was thinking. Here are just a few of my top stupid investments: $1000 on classic stamps from the Persian Gulf War valued at something like nickel. $10,000 on pre-launch of an Internet company-some one did felony prison time for his crimes and of course I never got any money back. Sound familiar?

The rest is history. Because I am really very lazy, I signed up for the newsletter again. I thought that I can always cancel it once I learn how to pick stocks myself. Well, I have not canceled the newsletter and I am making far more money that I ever thought I would.

Even the one of the most famous investment sites on the Internet, The Motlely Fool touts penny stocks.

This penny stock trading system has been a great money maker for me. I am by no means rich nor retired. I invest less than $100 on each trade and automatically sell off shares so I can at least break even. Once I hit the break even point, I monitor the stock until it hits a peak. The newsletter picks stocks with a great potential to rise significantly in value. But let me clarify what significant is. Say you buy a stock for .10 and it goes up to .25, which is significant. 250% gain is outrageous. But when you only invest a $100, the final gain will be something $225 after commission and slippage.

I have written this blog for the purposes of helping those who choose to trade penny stocks.  I can point you in the right direction to avoid the many pitfalls of any trading any securities.

Now days, trading penny stocks is not really a big secrets since so many stocks are under valued after this year’s crash.

Penny stock fortunes can be made trading under valued stocks if a person does their home work. I am not talking about “cheap stocks”. When I talk about penny stocks, I am referring to the thousands of listed stocks that for some reason have gone down in price and are severaly under valued. If all assets of the company were liquidated at a fire sale, this would be worth more than the liquid market value of the underlieing securities.

Penny stocks are those that sell under $5 a share. The prices are usually very volatile. First it is wise to understand why penny stocks perform so volatility. It takes very little trading to cause a low priced stock to soar in value because of their cheaper prices.

When looking for a program for penny stock trading, it’s important to make sure that the author of the newsletter targets companies with a good value and the potential to go up because investors want to buy it.