DIFFERENT MARKET CAPS
Today, we are going to discuss market caps and their differences in size. We’ve seen a change in the market going from 500 million shares to roughly 10 million shares, and that massive drop it what we look for, just as we would in penny stocks. When you’re looking at this overextended billion market cap in $CRON, the thought process would be to swing, but that doesn’t give you the risk-reward you would need for intraday trading even with a good pattern. There’s overtrading when we look at $SAP, for example, which keeps shorting into your strength, but there’s a repetitive squeeze because the range is small.
I see people using so much leverage on $CRON and $TORY, which I don't suggest when working within such a large market cap.
STOCK: $CRON AND $TORY
A market cap of this size becomes unpredictable, just as crowded trades do. Both possess an appealing volume and profit; however, trading on a pattern you don’t know ends favorably in a loss, especially in my experience.
The ultimate problem with both large and small caps is the inability never to know what’s going to happen. Even with small caps, you may know right away with all of the back orders how the next few minutes will go, but that’s not enough. You’ll find yourself with a massive loss after being squeezed, and you won’t know until it hits you.