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Almost every single person in the world knows the big name stocks. You can’t help it. It’s all over TV and newspapers. These are companies like Chevron, JP Morgan, and IBM. You just know when these companies announce their earnings, the whole world is watching.

Companies like these are the ones that investors generally use to build a slow and steady portfolio. It’s the safe way to go and there is nothing wrong with that.

However these are not the companies that traders make serious money trading in.

Nobody thinks of companies like Microsoft as some a potential gold mine. These are companies where the value is already known to the trading public.

Now, if somebody had the foresight to buy Microsoft when the majority of the public didn’t even know that company even existed, then that’s a different story. But these are the kind of trades that the rich and successful stock market traders take. They see the potential and they pounce.

You never find that kind of opportunity by following the stocks you see on CNBC.. To see the true potential of what investing the stock market can do, you need to look at penny stock trading.

I know that doesn’t strike a lot of excitement for most traders, but this is where the next potential Microsoft is hiding. Remember, all companies have to start somewhere. Microsoft didn’t just become a billion dollar company. It started off with modest beginnings.

Throughout the history of the stock market, there have been many companies that just burst onto the scene from nowhere. A year ago most people didn’t even know their name. For example, look at the internet. I know what you’re going to say. “A lot of them didn’t make it”. But take a look at the ones that did. They are big-time companies, now. You can be certain that they started off in the bargain bins.

Companies that are penny stocks today could be all the rage the very next year. It happens all the time.

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