Microcaps

Therefore, the term "swing trading" refers to the activity in which a trader maintains a position for a period of time that ranges from a minimum of one day to a maximum of seven days. Technical analysis is the tool that swing traders use in order to enter positions and then generate returns from those positions. The goal of  swing trading  is to generate gains based on changes in the price of an underlying security over the course of a trading session. To put it more plainly, it is the process for which traders determine where the price of an asset is expected to move next, enter a position there, and book profits from such a particular movement in the price. Swing trading, like other trading styles, is not without its share of inherent risk. Swing traders are vulnerable to a variety of risks, the most common of which is known as gap risk. This type of risk occurs when the price of security experiences a significant increase or decrease as a direct result of news or events t...

Stocks with smaller market cap than blue-chip stocks are favorites of many. While they are on the riskier side of investing, they also offer huge (sometimes life-changing) returns. Keep reading to know more about small and  micro cap stocks   and decide if you want to include them in your portfolio.    Small cap stocks have a market cap ranging from $300 million to $2 billion. Micro caps range between $50 million to $300 million. These figures make them less credible than the blue-chips stocks that many traditional investors prefer.  Many investors are interested in small cap stocks as they have historically offered high annual returns than mid cap and large cap stocks. Going by the market cap of small cap stocks, they have a greater potential to grow and offer substantial rewards than large caps. This is according to the theory of large numbers. The larger a company becomes, the more difficult it becomes for it to grow. For example, a company with a $50 million...