Why Invest in Microcap Stocks?

Generally I think to be a microcap investor you have to be somewhat contrarian. The type of person who likes to figure out the truth, instead of being told the truth. Investing in microcap stocks goes against everything your "institutionally educated financial advisor" will tell is you a "good investment". Too risky! Too many scams! You will lose all your money! However I believe "the most dangerous lies are the ones wrapped in fragments of truth—they make us question what we know, and believe what we shouldn’t." What you have been told about microcap stocks is partially the truth. There is no denying that microcap stocks have far more risk, failures, and scams than their counterparts, large megacap stocks. This is mathematically fact, simply given microcap stocks small size and lack of established history of success.

However what you will NOT be told about microcap stocks includes the following:

• Good microcap investors are making a LOT of money, far outperforming the markets.

• Good microcap investors want you to learn microcap investing and be successful, because more investors in microcaps help them make money. Their motivation is your success will help their success. It's a win-win!

• Because of this, almost all good microcap investors offer significant amounts of free content to help you learn microcap investing, and even invest in the stocks they are invested in. Many offer very reasonable paid platforms to help you become better.

• The narrative around "microcap stocks are bad" is created by people who do not find motivation in your success, institutions.

• Institutions get paid when you invest, their pay is not determined by your success.

• Most institutions can't invest in microcap stocks, therefore they are motivated to keep you away from an investing product that makes them no money. *

So in summary, the institutions who don't make money in microcap stocks, are keeping you away from the people who are making lots of money in microcap stocks. It's a fascinating story of competing motivations, where people who aren't motivated by your success are keeping you away from the people who are motivated by your success. I don't like it, and prefer to show both arguments fairly.

Both Sides of the Story!

Investing in microcap stocks takes time and work, as this isn't one of those "get rich quick" scams stealing money from people.

There is also both more volatility and risk, just this year I had two of my stocks drop 75% in the first ten minutes of the day.

If you don't have the time, or the willingness to put in real work to learn how to invest in microcap stocks. Then you are much better off investing in an easy S&P500 index.

If you don't have the mental strength to watch a stock drop 75% in ten minutes without panicking or quitting, then you are much better off investing an easy S&P500 index.

I think index investing is the best method of investing for probably 99% of all investors, and even most microcap investors should have the majority of their equity investments in index funds.

However the simple answer from ChatGPT clearly identifies five excellent reasons to invest in microcap stocks. Microcap investors get to invest in high growth companies that are sometimes very undervalued due to most large investors not being able to participate.

Investing in microcap stocks is quite possibly the BEST investment decision a retail investor can make. Assuming they have the time and dedication to learning microcap investing strategies.

Getting Started

The intention of this website is to make it easy to get started profitably investing in microcap stocks. Most microcap investing platforms charge $1,000 to $3,000 per year for their services, which is pricey for someone just getting started. However this results in the worst case scenario, which is new microcap investors trying to sort through all the scams and paid promotions of microcaps (and social media promoting the microcaps) only to get sucked into a pump and dump and lose their money. Over time I will be creating and updating a list of the best free and paid microcap resources, and in the meantime a great way to get started is by joining the Common Sense Investing patreon discord which is only $5.85 USD / month instead of $1,000's and start your profitable journey today.