Stocks & Commodities V. 35:05 (30–33): The Alter Ego Of Swing Trading by Martha Stokes, CMT

The Alter Ego Of Swing Trading by Martha Stokes, CMT

With so much coverage of blue-chip companies coming from popular media channels, tweets, or social chat rooms, traders often overlook small-cap stocks, which provide wider spreads and more liquidity. Find out how to capitalize on them.

While most retail traders continue to trade only Dow 30 stocks or large blue-chip stocks, they are missing out on an opportunity for swing trading. Why opportunity? In October 2016, a major internal change in market structure was set in place. For the first time in over a decade, spreads widened, as the Small Cap Pilot Test Program that had been going on behind the scenes was finally approved by the Securities and Exchange Commission (SEC). Since then, professional traders have been highly active in small caps as liquidity increases with wider spreads ...