Can you invest $200 in penny stocks or what you call microcaps and have that investment grow to $100K or even a million dollars in the next few years? Many people do not perceive microcaps as a serious investment. There is some truth in this. But do you know the guy who turned $1k into $1 million in just 1 month with penny stocks in just 38 trades! Or do you know someone known as Penny Stock Billionaire?
So why microcapsules? There are thousands of stocks in markets such as technology, agriculture, health, commodities, energy and more. But what separates penny stocks from ordinary stocks is that they are very cheap. Most of these microcaps sell for as little as $0.1 per share.
Imagine a stock worth $0.1 a share skyrocketing to $10 a share in, say, a few weeks. That’s a 10,000% return. So, with microcaps, you have the potential for explosive profits, and with prices ranging from a few cents to a few dollars, small investors can also play with them.
The problem with most stocks right now is that they take too long to show capital gains. It can take several years for a stock to go from $50 a share to $100 a share. But a $1-per-share stock can easily double overnight. Hey, it’s only one dollar.
So, with penny stocks, you can get rich at lightning speed and get poor just as fast if you don’t invest in them carefully. The best way to invest in penny stocks is to simply start with $200. Turn that $200 into $1000! That’s $1,000 in $10,000. That $10,000 into $100,000. You got the picture.
Over the past few decades, penny stocks have regularly outperformed common stocks by huge gains. In 1939, John Templeton bought 100 shares of each company that was trading at less than $1 per share. Over the next few years, his investments multiplied, even as many of the companies he invested in went bankrupt.
This shows that the profitability of penny stocks. John Templeton eventually retired as a billionaire and spent the rest of his days in the sunny, carefree Bahamas. John Templeton graduated from Yale University and was a pioneer in investing in globally diversified mutual funds. But his success began with his plan to buy 100 shares of each company trading under $1 per share.