Success in small cap & micro cap stock trading like with any other business in life comes from being able to see the big picture and from paying attention to the tiny details.
Let’s say for example that you’re a business owner and you have a jewelry shop on a particular street the same as the guy in the other corner does, but still the other man is making 5 times more profits than you are just because he is doing something different. He knows something that you don’t and that is what makes him more rewarding.
The funny thing about this sort of scenario is that you might be just a little distance away from being as powerful as he is.
We know that day trading small cap stocks with momentum is only one way to generate money in the stock exchange. But it may be the fastest way when you do it correctly.
We also know that plenty of people shy away from short term momentum trading and believe that just a few traders can profit from it. It’s true. Only those short term traders with proven knowledge have the ability to profit consistently when stocks move up or down.
You do not necessarily have to exchange small cap stocks with negative or positive momentum all the time. However, you can learn how to take advantage of them when you experience with the best chances and at precisely the exact same time limit your risk.