Micro Caps how did you decide which one?

[Shiane]

So I'm just curious if anyone has ever invested in micro caps. If so, how did you decide on which one. Have you or do you do well with them. If you are familar with them, are there any categories that you've noticed out perform the others?

I thought there was a list of micro caps that you could get, anyone know where I could find one.

[sweetgapeach]

Micro Caps ?

[Annie]

Micro Caps ?

also known as penny stock

[sweetgapeach]

also known as penny stock


Ohhh , I dont know then . I have to ask my sister , that is her job .

[Norfolkdave]

What is this! Alien terrority, heh heh heh decifier

[Annie]

What is this! Alien terrority, heh heh heh decifier

Here Dave, check out this link. It's a bit hard to explain in a sentence or two.

http://www.sec.gov/investor/pubs/microcapstock.htm

[Norfolkdave]

Here Dave, check out this link. It's a bit hard to explain in a sentence or two.

http://www.sec.gov/investor/pubs/microcapstock.htm

LOL understand, jesus the mind boggles, too much for the grey matter to take it right now, but thanks!:D

[Shiane]

lol well now i know who not to call for investement tips!

[sweetgapeach]

lol well now i know who not to call for investement tips!


I am serious , I can ask my Sister , she is a Stock Broker , knows all that stuff , she does it for me , I have know idea what she does but she does REally Really well !!:)

[Shiane]

I am serious , I can ask my Sister , she is a Stock Broker , knows all that stuff , she does it for me , I have know idea what she does but she does REally Really well !!:)

Thanks, that would be great, I've never messed with Micro caps so it's all new to me.

[MCat]

I would need some spare change before I could mess with pennys stock.

[Shiane]

Laffs! Good one MC!

[Annie]

I would need some spare change before I could mess with pennys stock.

Do you really think he's going to help you? He's not too keen about giving advice.

[Zpanther]

Well Shiane I've played with Penny Stocks. It can be a lotta fun..... but it's a lot of work. First of all, don't invest ANY money you can't afford to lose in Penny Stocks (that pretty much goes for any stocks I guess). This is a murky world. Many of the companies listed are not really companies at all........ just shells they use for investment in any variety of things. They are NOt traded on the NYSE or NASDAQ. They are traded on the Over The Counter - Bulletin Board Exchange (OTC-BB). These are risky, but not as risky as the Penny Stocks that refuse to disclose their financial information and are delisted from the OTC-BB. Those stocks are traded on the National Quotation Bureau Exchange and are commonly referred to as 'Pink Stocks.'

"An OTC equity security generally is any equity that is not listed or traded on Nasdaq® ("Nasdaq") or other national securities exchanges such as the New York Stock Exchange or the American Stock Exchange. The OTC-BB is a regulated quotation service that collects and distributes real-time quotes, transaction prices, and volume data for OTC securities. The OTC - BB is a quotation medium for subscribing members (i.e., the Market Makers) and is not an issuer listing service. This is a subtle but very significant difference. The OTC-BB's relationship is with the firm making a market in the OTC security rather than with the issuer. For the other major United States securities exchanges the relationship is between the exchange and the company, not a broker-dealer making a market in that firm's security.

OTC - BB securities are traded by Market Makers that enter quotes and execute trades through a closed computer network, which is accessed through a Nasdaq Workstation. Securities traded on the OTC-BB include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts ("ADRs"), and Direct Participation Programs ("DPPs"). "

There are quite a number of websites that cater to micros and some have bulletin boards that follow them. I used to 'day trade' mostly midcaps a little bit a few years ago too. That's another whole ballgame. But as far as Penny Stocks go, I learned you really don't need to be too concerned about whether or not it's a good company to invest in (like you would with normal equities). Odds are the company won't be around for very long anyway, so you gotta get in when there is momentum and the stock is rising and get out before it crashes....... sometimes that can all occur in a few hours of a single day, so you better be watching your stocks every day. If you buy Penny Stocks and hold them........ you will eventually almost always lose everything you invested........ BUT if you have the time to watch, you CAN get lucky and make a good percentage on some of them. A friend of mine invested $10,000 in a Penny Stock and it was worth $65,000 in just about a week, but that is very unusual.

It's supposed to be illegal to sell Penny Stocks 'short', but there are Hedge Companies and other large investors that figure out ways around it. That's where you can get hurt. They can start selling your stock 'short' and drive the price down to nothing or the company out of business. Selling short is also tricky, but can be very lucurative. The Day Traders I know that made money (and most of 'em don't), made over 75% of their profits selling 'short.'

That's probably more than you wanted to know and I'm sure there are people that may be able to give you better advice. If you don't know anything about the Penny Stock world.......... stay away from it. It's basically legalized gambling.

[Shiane]

Thanks ZP. I know it's one of those risky things that you definately have to be on your toes. You are very right about it being a gamble, I know a lot of people make money with them but not 100% of the time like you said it's a gamble. I agree don't risk what you can't afford to lose.

[Cotties]

Well I think we know what Z.P does in his free time. How long have you been "playing" with stocks? Well Shiane I've played with Penny Stocks. It can be a lotta fun..... but it's a lot of work. First of all, don't invest ANY money you can't afford to lose in Penny Stocks (that pretty much goes for any stocks I guess). This is a murky world. Many of the companies listed are not really companies at all........ just shells they use for investment in any variety of things. They are NOt traded on the NYSE or NASDAQ. They are traded on the Over The Counter - Bulletin Board Exchange (OTC-BB). These are risky, but not as risky as the Penny Stocks that refuse to disclose their financial information and are delisted from the OTC-BB. Those stocks are traded on the National Quotation Bureau Exchange and are commonly referred to as 'Pink Stocks.'

"An OTC equity security generally is any equity that is not listed or traded on Nasdaq® ("Nasdaq") or other national securities exchanges such as the New York Stock Exchange or the American Stock Exchange. The OTC-BB is a regulated quotation service that collects and distributes real-time quotes, transaction prices, and volume data for OTC securities. The OTC - BB is a quotation medium for subscribing members (i.e., the Market Makers) and is not an issuer listing service. This is a subtle but very significant difference. The OTC-BB's relationship is with the firm making a market in the OTC security rather than with the issuer. For the other major United States securities exchanges the relationship is between the exchange and the company, not a broker-dealer making a market in that firm's security.

OTC - BB securities are traded by Market Makers that enter quotes and execute trades through a closed computer network, which is accessed through a Nasdaq Workstation. Securities traded on the OTC-BB include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts ("ADRs"), and Direct Participation Programs ("DPPs"). "

There are quite a number of websites that cater to micros and some have bulletin boards that follow them. I used to 'day trade' mostly midcaps a little bit a few years ago too. That's another whole ballgame. But as far as Penny Stocks go, I learned you really don't need to be too concerned about whether or not it's a good company to invest in (like you would with normal equities). Odds are the company won't be around for very long anyway, so you gotta get in when there is momentum and the stock is rising and get out before it crashes....... sometimes that can all occur in a few hours of a single day, so you better be watching your stocks every day. If you buy Penny Stocks and hold them........ you will eventually almost always lose everything you invested........ BUT if you have the time to watch, you CAN get lucky and make a good percentage on some of them. A friend of mine invested $10,000 in a Penny Stock and it was worth $65,000 in just about a week, but that is very unusual.

It's supposed to be illegal to sell Penny Stocks 'short', but there are Hedge Companies and other large investors that figure out ways around it. That's where you can get hurt. They can start selling your stock 'short' and drive the price down to nothing or the company out of business. Selling short is also tricky, but can be very lucurative. The Day Traders I know that made money (and most of 'em don't), made over 75% of their profits selling 'short.'

That's probably more than you wanted to know and I'm sure there are people that may be able to give you better advice. If you don't know anything about the Penny Stock world.......... stay away from it. It's basically legalized gambling.

[Cotties]

Are you being a naughty girl again Annie?;) Do you really think he's going to help you? He's not too keen about giving advice.

[Annie]

Are you being a naughty girl again Annie?;)

Oh this time I hope not! I was hoping I was being more of a smart ass than "naughty". Besides, if I really wanted to be naughty, I'd come and get you for advice!

[spare_change]

ZP gives good advice.

Microcaps are not even legalized gambling -- they are generally legalized theft. While you can make money -- and frankly, it is mainly pure luck -- you will almost always lose your investment. A large segment of the companies represented were established for a single purpose -- to get money in the microcap market and then fold (taking the money with them).

The rise and fall of microcaps is usually generated by the interest in the stock -- by that, i mean somebody buys stock, so another person assumes that the stock is going to rise, so he buys some, which causes a third person to see two doing it, so he wants to get in on it, and he buys. Pretty soon, the stock has risen 10 or 20 times its original value. So, you are buying stock that is rising, anticipating that it will rise more. But, somebody finally figures out there was no financial reason for the stock to rise -- and down comes the stock, usually crashing back to the original value.

If you want to invest in microcaps, just send me the money instead -- you will still have lost it, but at least you will have my undying gratitude.

[spare_change]

Boy, you're right, Annie -- I hate giving advice --- LOL.

Actually, because of NASD and SEC license issues, I really can't give investment advice.

But, on everything else, you can bet I have an opinion -- whether I know anything about it or not!