🚀 Small cap momentum stocks become a feeding frenzy for retail traders who all want a piece of the action. In recent years we have seen small cap stocks routinely go up over 100% in as little as a few hours, as speculative traders buy up shares as quickly as they can.
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It's more going to be retail traders that are saying this is a stock moving quickly that has the potential to make a big move and every now and then you'll see a stock like this and you know a week later you'll see that they got they got bought out and they got bought out for 100 premium. So there's a lot of speculation in the small cap market and that speculation can fuel demand. So news fuels demand. the price being lower, fuels demand, the market cap also being lower fuels demand.

and that's represented by the float the number of shares available to trade. So a stock like this has a particularly low float.

By Stock Chat

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2 thoughts on “The impact of retail traders and speculation in small cap markets #stockmarket #daytrading”
  1. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    Aug 28 Monday

  2. Avataaar/Circle Created with python_avatars FyeLow says:

    insightful stuff…

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