High growth micro cap stocks how to#

The term вЂњblue chipвЂќ is actually inspired by the game of poker, where blue chips have big value. If youвЂ™ve heard the term вЂњblue chip stock,вЂќ large-cap stocks will often fall into this stock type category. ThatвЂ™s still pretty big, but tiny in comparison to the large-cap company. In comparison, a small-cap company falls between $300 million and $2 billion. But how big is the difference?ДЄ large-cap company has a market cap between $10 and $200 billion. YouвЂ™ve probably already figured out that a small cap company is not as big as a large-cap company. WhatвЂ™s the difference between small and large cap? HereвЂ™s the 411: Often, theyвЂ™ve been around for a long time, or are in a major industry.ДЇor example, General Electric, with a market cap of about $63 billion at the time of this writing, would be considered a large-cap stock. ThatвЂ™s because these are big, established companies. While there isnвЂ™t an official delineation of the number that makes a stock fit into one category versus another, a large-cap company would typically be considered one that has a market cap between $10 and $200 billion with the market cap formula. Once youвЂ™ve determined the market cap, the number you come up with will put the company in a variety of different size categories, ranging from nano- or micro-cap (these would be low priced stocks/smaller companies) to small-, mid-, large, and mega-cap companies. Now that you know what market cap means, what does it mean to be a large-cap stock? For example, you might create a watchlist completely comprised of companies with similar market cap sizes.Д¬hoosing stocks with different market cap sizes can help add diversification to your portfolio, too.ДЄll right. With the market cap number determined, you have a figure that can help you target your research and technical and fundamental analysis efforts to be most effective.ДЇiguring out the market cap helps you narrow down stocks of interest. There are market cap calculators that you can find online, but come on. That company has a market cap of $50 million. So, for example, say Company X has 1 million shares, which are being sold at $50 each. ItвЂ™s determined by multiplying the total number of shares a company has by the current price per share. Good news: ItвЂ™s ridiculously easy to figure out a companyвЂ™s market cap. While you could (and should) look at a companyвЂ™s sales and assets, the market cap gives you a different way to look at the size and scale of a company. Market capitalization is the total market value of a companyвЂ™s shares outstanding. Д®very trader should have an understanding of market cap because itвЂ™s an extremely important marker of a given stock. When we start talking about caps in the financial realm, weвЂ™re talking about the market cap, or market capitalization. 5.1 Create Your Own Growth Stock WatchlistД«efore defining large-cap stocks, letвЂ™s clarify what вЂњcapвЂќ means.

High growth micro cap stocks how to#

5 Tips on How to Trade Large-Cap Stocks.2 How To Find and Trade Large-Cap Stocks in The Stock Market.