For those who want to do some microcap investing, there are some excellent opportunities, and by following a few rules, some good profits to be taken by investing in microcap stocks. Also reffered as "penny stocks," these are often not listed on the major exchanges Whereas a traditional investor would probably never invest in a company that is not profitable, micro cap investors consider potential rather than current revenue streams of the company.

There are four primary factors that contribute to the success of the microcap investing:

• financial understanding - knowing how to evaluate a company's performance and its management;
• experience - a good intuitive feel for products and services that will impact society;
• luck - unpredictable good fortune blessing a few of your holdings;
• psychology - understanding enough about yourself to avoid emotional mistakes.