(Last Updated On: November 22, 2019)

If you are looking specifically in equities or stock wise right as a part-time retail trader, I would really suggest that instead of focusing too much on all those very popular blue chip stocks, you might want to look more towards small-cap stocks and mid-cap stocks. The reason is being because, usually for small-cap and mid-cap stocks, fundamentally there’s actually much more room for growth, which means that there is potential to see very sharp climb and movements for those small to mid-cap stocks.

Generally, for small-cap stocks, the definition for small cap-stocks is between 300 million to two billion. While mid-cap stocks, it’s about two billion to $10 billion a day. It’s based on market capitalization. Alright? Sorry, I forgot to add in the word market capitalization. Generally, if you look at small-cap to mid-cap stocks, they are actually very liquid enough for most of us as a part-time retail trader.

Of course, there’s another even smaller category, for example, micro-cap and nano-cap, which will be in the tune of 50 million to between 300 million. For those stocks, they could potentially be quite ill-equipped so that’s the reason why I suggest focus from at least small-cap to mid-cap onwards.

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