While there are many different types of investing one can partake of the author believes that micro cap investing is the most rewarding one. Micro cap investing has the potential to yield huge gains in a short period of time. It is very common for penny stocks to move upwards of 25% in any given day. Keep in mind that the adverse means that they can also move down 25% on any given day. The nature of penny stocks makes them both very rewarding and very dangerous. Then why invest in them at all? Because in this world the more risk you take the more reward you are posed to gain. If you put your money in a bank account you will eliminate all risk short of a total banking melt down. You will always be able to access your money regardless of the general condition of the market. A bank account seems like the perfect type of investment vehicle until you realize that the interest you earn hardly keeps up with inflation after you have paid taxes. You can then choose to increase your tolerance of risk and invest in a bond with relative security and safety. You will then have peace of mind but also a very small return on your investment. If you decide that you are willing to risk your money you can enter the security arena via a mutual fund or the purchase of a security like General Motors and hope that by the end of the year your investment has grown by 20%. You have increased your risk and have increased your return potential at the same time. I usually deal with Trading 247 for these type of tasks.
