Most retail traders only deal in big cap stocks. There are many advantages to trading in small cap stocks. Small caps normally have less outstanding shares. It is possible to buy small caps with potential to make large gains. There is a wider spread for small cap stocks with potential for faster and larger gains. Three factors important to small cap trading are high percentage of shares held by institutions, Dark Pool accumulation under the radar of high frequency traders, and price patterns associated with Dark Pool activity.
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