Following Halloween is when I usually notice a sentiment change in the small cap market & the opportunities get better.🤞
I believe this cycle from July & beyond wipes out a lot of retail “the less experienced/gambling type traders” who don’t have the same disposable income/equity/ & time to throw into the market like during prior stimulus periods.
This slowdown in liquidity & combined high interest rate environment is undiscovered territory for me as a trader
What I’ve learned over the years is each cycle is unique & you have to be on your toes to capitalize in the slower times
The opportunity is there just need to pivot
The small cap field is expert level rn, not the novice league we compete in at times.
Since the competition is elite, being sloppy or undisciplined is especially expensive, small leaks compound.
If you can excel in this environment, you'll prolly crush the next cycle.
Small cap stock selection in this low liquidity environment is what will make or break your consistency.
They just aren't handing out a consistent stream of opportunities like in a fast & healthy market.
In fast markets where we get real big % gaps consistently, those bring sellers because shareholders have a reason to sell before shorts get trapped. So even dilution isn't necessary to see a meaningful fade more often.












