Getting Started Investing In Micro - Super Trader System

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Everything You Need To Know Before Investing In Micro Cap Stocks

By

James Connelly A.K.A.

The Penny Stock Prophet

Getting Started Investing In Micro-Cap Stocks:

To get started investing in micro cap stocks, the first thing you will need to do is sign up for an online brokerage account. There are many different options for today's investor to choose from, but there are a few questions you need to ask before deciding which broker to use.

1. Does your online broker have restrictions when it comes to trading micro-cap stocks?

2. Are there any additional fees associated with the account?

3. How much will each trade cost you? (transaction fee)

4. Is there a minimum required amount to start?

Scottrade, Ameritrade and E-trade are probably the most well known online brokerage companies available to investors, and if you're signed up with one of them, then congratulations, you are one step ahead of the game!

In my opinion all 3 of them are very good, even though they have higher transaction fees associated with them then some of the smaller online brokers. If you already have an account with one of these three brokers and are happy with it, then by all means keep it!

If you're new to investing and you're looking for a good online broker, I highly recommend Zecco. I have a Zecco account currently, and have been completely satisfied with their service. Zecco also has the lowest fees of any online broker at $4.50 per trade.

One of the things I really like about Zecco is that they have no minimum initial amount required to get started. This is a huge plus for some of you "newbie's" who are just getting started and don't want to invest a large amount of money from the start.

I recommend starting with at least $500 if you can afford it. Remember, you can always start with more or less, because there is no minimum when using Zecco.

With Zecco if you start with $2500 or more, your trades are free, but for an amount smaller than $2500 each trade will cost you $4.50 per transaction. Believe me you will not find a cheaper transaction fee anywhere!

Other benefits of Zecco for Micro Cap Trading are:

1. There are absolutely no restrictions when it comes to trading micro cap stocks. This is significant as some online brokers do not allow investors to purchase micro cap stocks.

2. Lowest fees of any online broker. ($4.50 per transaction or free starting with a balance of $2500 or more!)

3. User friendly trading platform. (simple even for beginners)

4. Fast execution of order.

5. Easy and fast funding. Wire transfers are available, and you can be ready to start trading in less than 3 days!

To Sign Up for a Zecco Brokerage Account Visit:



Why a Recession Is the Best Thing That Can Happen To Penny Stock Investors

A lot of people have asked me if it's still safe to invest in micro cap stocks during a recession. Before I answer that question let me emphasize that there is always a risk involved in investing in any market, regardless of what is happening in the economy.

That being said, It has been my experience that a recession is the absolute BEST time to invest in micro cap stocks! Some of my biggest gainers in the last few years have come during a time when the big indexes were following a downward trend! I know that sounds crazy, but it's the truth! A recession in the "big" stock indexes is a positive factor in micro cap stocks due to the simple fact that when the big indexes aren't doing well, many investors take a break from large cap stocks to focus on micro cap stocks.

Large cap stocks have a difficult time correcting from a negative trend in the overall market condition, while micro cap stocks are much more independent of overall market conditions. This brings the "big guns" with fat wallets into the microcap market, which means more liquidity in the micro cap sector.

More liquidity = bigger gains for micro cap traders. So stop being negative about a struggling economy! A struggling economy is going to mean big gains for micro cap traders. I personally believe that the current economic conditions are going to show us bigger gains in the micro cap markets than we've ever seen before! There couldn't be a better time to invest in micro cap stocks than right now!

Why Micro Cap Stocks Are So Profitable

Micro cap stocks are a completely different breed than large cap stocks, and require a completely different strategy for investing. There is more risk associated with investing in micro cap stocks (we will discuss how you can limit that risk significantly in a few minutes) but there is also MUCH greater potential for huge gains in the micro cap markets than in any of the "big" markets.

Large cap stocks are lucky to have gains of 5-8% in a single day, and even averaging 10% growth a year is considered a `solid' investment. Micro cap stocks however, can easily gain 25%+ in a single day, and some jump HUNDREDS of percent on merely a positive announcement! (I.E. Strong Financials, Approval of Funds, New Developments...etc)

It's a lot easier for a stock to jump from 3 cents to 9 cents (a 300% gain) than it is for a stock to go from 30 dollars to 90 dollars. (An equal percentage) Remember that a $10,000 investment in a 3 cent stock that jumps to 9 cents will earn you the same profit as a 30 dollar stock that jumps to 90 dollars.

These big percentage gains are MUCH more common in micro cap stocks than they are in the "big" index stocks, and most importantly they can happen in days and weeks, rather than years! This is why there is SO much opportunity in the micro cap sector. These kinds of gains are a daily occurrence if you know to pick winners! (We'll explain how to find these winners later.)

So what makes a micro cap stock rise in value so rapidly?

There are a couple of factors. The first is due to a positive news announcement regarding a company. This can come in the form of

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