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Why penny stocks? With one big stock at $100 a share, you need $10,000 to buy 100 shares of that stocks. However, microcaps are cheap. So cheap that you can buy hundreds of shares for only a few bucks.

Why penny stocks? With one big stock at $100 a share, you need $10,000 to buy 100 shares of that stocks. However, microcaps are cheap. So cheap that you can buy hundreds of shares for only a few bucks.

Penny stocks usually get traded on the OTCBB (Over the Counter Bulletin Board) and the Pink Sheets. Now, OTCBB and the Pink Sheets are not as strictly regulated as the regular Stock Exchanges, this makes many investors think twice before investing in these penny stocks. But those who are ready to do their research and proper due diligence, investing in these penny stocks can be highly profitable. By investing just a few cents in these stocks something like $0.05 to $0.15 per share, you can easily make a return of something like 100%, 200%, 500% or even 1000% in the next few days to weeks if you have done your research well. Now, imagine, how much a large cap stock can take to appreciate as much as 20%. It can take as long as six months to 12 months. Whereas in case of these penny stocks, you don't have to wait that long!

How much a large cap moves in a few months? Not more than 10-15%. But a penny stock can make monster moves of 100%, 500%, 1000% or even more in just a matter of few days or even hours. You too can make a fortune trading microcaps. What you need is good research to unearth those hidden gems that are about to make monster moves in the market. You only need a few hundred buck and the right timing to make a fortune.

John Tempelton started his investment career by borrowing money and investing that in penny stocks. He made a good return. In the late 1930s, he invested that money into a diversified basket of 100 different stocks. When he sold those stocks after the Second World War, he had made his fortune.

James Connelly started with only $1,000 and in just 38 trades turned that $1,000 into $1,000,000. How long did he take to turn his $1,000 into $1,000,000? Only 1 month!

So with microcaps, you have the potential of becoming an overnight millionaire. Yes, this is true! Penny stocks can shoot up and make massive moves in the market in a matter of few weeks, days or even hours. The only problem with these penny stocks when they shoot up fast is liquidity. Liquidity dires up fast. But if you know how to handle that, you can make rapid gains in a matter of few weeks, days or hours.

Now, penny stocks have the potential to sky rocket in just a matter of few minutes. Think about a large cap stock making a gain of 970% in just a matter of half an hour. This is simply impossible. Large caps don't move at all for months what to talk of making a gain of 970%. But this much capital gain is possible with microcaps.

But with microcaps, you can make a 970% gain in a matter of just half an hour. On Jan 25, 2010, just after the market opened the microcap Command Security Corp was already up by 970% in just a matter of 30 minutes.

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