What to Do if You Want to Make Bigger Stock Gains

Small-cap investing is hands down one of the most exciting and profitable ways to invest in any market.

It always has been, and it always will be.

The best thing is that unlike the blue-chip end of the market, the scenery is always changing.

That’s why a small-cap stock can go from sub-20 cent obscurity to three-dollar-plus fame in a matter of days. Here’s the proof…

But before we show you the proof, we’ll note one thing.

As you’d expect, small-cap investing isn’t risk free. But that’s what makes it such a lucrative market for investors.

The higher the risk, the higher the return.

It doesn’t get much simpler than that.

But providing you don’t go crazy by investing more than you should in these stocks, you often find the return outweighs the risks.

Quadruple digit gains in less than a year

The best example of the potentially lucrative nature of small-caps is a stock Tim Dohrmann told Australian Small-Cap Investigator subscribers to take profits on this week.

As of today’s price the stock is up 1,376% in a year.

Almost as good is the fact that it’s up 1,076% over the past six months.

Now, we can’t claim credit for all of those gains.

We recommended the stock two years ago when it was trading at 42.5 cents. Within a year of tipping it the price had sunk to just 12 cents.

What a disaster.

But we didn’t give up on it.

There was a simple reason for that. And it’s the same reason why most investors are bailing out on stocks today — they’re focussing on the short-term issues while we’re looking at thelong-term opportunity.

In the case of the company that has gone up 1,376% in a year, the market paid more attention to slumping commodity prices than it did for the potential of the US shale gas revolution.

But when the company started to make a series of key announcements about a key project in Louisiana, the market started to take note.

First the share price started to move up slowly…it climbed past the initial 42.5 cent buy price…until suddenly, within a few days the share price tripled. And a few weeks after that it had soared 711% above the recommended buy price.

Read the rest of this article at Money Morning