The two small cap stock picks I have been personally watching and recording are Matts Microcap Millionaires and also Penny Stock Prophets.

Each of the services are providing exceptional stock picks and now you can receive 7 free picks from them.

What the stock pick providers are doing by giving you free picks is showing you their service makes you money. I have personally traded my way to just under 100% profit and over 700% profit respectively.

Microcap Millionaires is much less risky and hence the lower profit ratio whilst Penny Stock Prophet is riskier, hence the higher profit ratio.

My strategy which I personally use for both services are thus:-

For Microcap Millionaires I use a 30%-40% profit target against a set 10% loss target. This gives me a favourable 3-1 or 4-1 profit ratio.  The majority of Matts stock picks work in your favour and thus (like any betfair user) will mean you are obtaining value for money. For Matts picks I use 40% of my bank on each trade which means that if I hit my target I make between 12-18% of my total bank balance (or a 4% loss of amount used to trade and 30%-45% profit of amount used to trade). If the stock should hit my stop loss it means I only lose a maximum of 5-10% of my total bank balance. The absolute most any trader should expose their entire bank to is 10%. This is why it makes money. Its all about money management.

On the other end of the scale, Penny Stock Prophet is much higher risk in that the stocks are more volatile. This means a 10% stop loss is not as effective at producing gainers. I personally use 20% of my total bank to trade these stock picks. I use a 50% stop loss with a 40%-60% seeking profit target (“seeking” just means that when the stock goes above 40% profit it follows it until the price retreats and I take overall profit).

What this means is that using 20% of the bank and a 50% stop loss, should the stop loss be hit I am actually only losing a maximum 10% of my bank (again..the most a trader should lose). Should the stock increase past 40%-60% (this is a 2-1 or 3-1 ratio) which is quite typical for these stocks, I make at least 20%-30% of my bank. This is value for money.

So, as you can see, on both services you only need to get 1 stock right out of 2 or 3 stock picks. After following the picks for a few months I can assure you that so far the ratio has been much more than 1 winner out of every 2 or 3 picks!

This is basic strategy and I shall be posting within the relevant sections my entire strategy in stages where it can be followed should you wish. This is how I trade the two services.

For now, get your 7 free stock picks by visiting here and here and snap up your freeby goodies!

My recommendation is to just monitor these picks, do not use real capital, but build a spread sheet to monitor these free stock picks using the real life money management skills I have outlined above. You will most likely see a profit.