Most new traders are drawn into trading penny stocks by the prospect of making 100’s of percent returns in just a few days. They expect to turn $1000 into $10,000 in a week because they are going to buy the next Amazon. I know many successful small-cap and penny stock traders. We have many traders in our chatroom who have made small-caps their primary niche. There are a ton of opportunities to the long and short side on these names. But the trading style is not suited for everyone. And most do not understand the challenges of maintaining trading consistency in the niche. If you are considering trading small-caps, you need to know what you’re getting into. Trading them is not as easy as most trading services make it seem. Here are the pros and cons of trading small-cap stocks: