Micro Cap stocks or Micro Cap Fund better known as Penny Stocks are tiny issues that trade on secondary exchanges such as the OTCBB or the Pink Sheets
These smaller exchanges have much less stringent listing and filing requirements making it easy for small companies to go public and raise capital to fund future growth.

We have all seen the incredible gains that are possible when trading Micro Cap stocks or Micro Cap Fund; every week there is a new hot stock that goes beyond all expectations and moves up 500% or more in a few days. What if you could be one of the lucky ones you bought in before the huge move?

In reality this is very difficult to do. In fact; most new investors that trade this highly volatile issues love money and lots of it. This is because they buy high and sell low. These markets are ruled by fear and greed and the market manipulators are fully aware of this and play investors emotions like a fine tuned Piano. When they want you to buy the seed the internet with positive information on the particular hot stock in question. When they want you to sell, they do just the opposite.

Every year thousands of these Companies go public in the US; usually trading for a few pennies per share. So how can the average investor tell the good from the bad? The winners from the losers?

First do not buy as the results of hype you find on the internet; that usually means that the professionals are selling to YOU. The best way is to search on your own and find Penny Stocks that are trading at or near their historical low with market capitalizations less than US $1M You want to find undiscovered Companies with exciting products or technologies that really have a chance to be a viable business. You also want to look for Companies that have a tight stock structure and do not have high overhead or big short term liabilities that would force them to dilute the stock.

Many of these Companies trade on hype more than anything else and that is really the most important factor when determining the next big penny stock runner. The really big successful Micro Cap stocks start off with solid fundamentals as described above and then skyrocket on the publicity once the investment community finds out what you know all along.

With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Paradigm Capital Management, is focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.
To get more details, visit here: http://paradigmcapital.com/