Reasons for the High Profitability of MicroCap Stocks

You have, without a doubt, heard of Blue Chip stocks. They used to be very safe investments with high stock prices that remained stable over indefinitely long periods. With the arrival of the internet and the increase speed of information flow, Blue Chip really no longer exist.MicroCap stocks are the complete opposite of what Blue Chip stocks used to be, since they are priced low and are highly volatile. They can gain over 25% in price within just a day. Some positive news on a specific MicroCap stock would make its price jump by over 100% within a day.Since MicroCap stocks are low priced, a small increase in price amounts to a very high rise in percentage. For example, a price rise of $2 on a $1 stock amounts to a 200% gain whereas a $10 rise in price on a $100 stock amounts to only a 10% gain. That is the main attraction of MicroCaps; and why many traders and investors now go for them in a big way.If you wonder what makes MicroCaps gain in price so fast, the answer is that mostly, it is due to some good news pertaining to the  company and also to the fact that this stock was widely followed by investors when this news happen.So, how do the investors and traders find the winners among MicroCaps to get some good gains? The secret lies in the Volume. Lookout for volume surges in microcaps in finding big gainers for you. www.HyperGrowthStock.com is a FREE daily newsletter that alerts investors to such moves.The main trick for real success with microcaps lies in figuring out the possible duration of the buying pressure. To determine that, you should be a top class researcher or be able to hire an expert in the relevant field. Also it is recommended to use newsletter services so that you can learn as you trade, there are many types of newsletters and to read one that has Fundamental information and also Technical Analysis is one method that help learn very fast. www.HyperGrowthStock.com is such a service and you should go register, it's a free service loaded with valuable information and many alerts every week.