Microcap stocks are risky. That goes without saying. These smaller stocks have limited assets and limited liquidity. They are not, however, completely limited. Over the years, we have sifted through thousands of microcap companies to provide individual investors with the most lucrative picks.
In any portfolio, risk assessment is crucial. Here at The Bowser Report, we devised the Bowser Game Plan for buying and selling microcap stocks. It goes without saying that a few of the rules in the Game Plan relate to risk management. When you start investing in Bowser stocks using the Bowser Game Plan, you will limit your risk by:
- Buying stocks that are less than $3 a share. Some subscribers buy up large portions of these small stocks, but by buying small amounts, the most you can lose is a small amount. For example, in our model portfolio (the Beginner's Portfolio), we buy 100 shares of each company that we add. As a result, the most that we can lose is $300 (100 shares at an initial investment of $3/share).
- Diversification. This may be perhaps the most important Bowser rule. We urge buying 12 to 18 different stocks from different industries. A well diversified portfolio ensures that your losses are covered by your gains. Generally, we believe that a handful of stocks will do okay, a handful won't, and a couple will shine. These winners more than make up for the losers.
- Our Selling Planattempts to remove greed and emotion from selling. We advise selling half when the stock doubles, this covers you initial investment. The other half you sell when the stock drops 25% from its most recent high, this sale is all profit. If the stock doesn't double, sell half when it drops 50% from your purchase price. That way, the most that you can lose is half of your original investment, which can be made up for by other stocks that are going to double.
At The Bowser Report we do the majority of the research for you. We sift through stock after stock, looking at profitability, investor interest, share structure, and much more. We rate each company that we look at and recommend only the best. Each month, we write-up the best in the latest issue, initiating its coverage in our Report. By doing so, we ensure the financials of the company, which is one more way that we attempt to limit your loss.
To learn more about the Game Plan, visit our CONCEPT page. If you would like to subscribe now or check out our other products, visit the SHOP page. To request your free, no obligation sample copy of The Bowser Report, email your name and full mailing address to email@example.com.