Rules are Different for Small Caps

Smaller capitalization (i.e. <$1 billion) companies are more volatile and less efficient than their larger peers, and this is both an opportunity and threat to the individual investor. Individuals actually have a bit of a competitive advantage in small caps as it is difficult for institutional investors to build meaningful position sizes. But be careful. Manipulation and pump & dump schemes do exist. Even legit, big buyers and sellers can come out of nowhere, move the market and then leave just as fast. The short term price action, in many cases, will not be an indication of you either being super smart or missing something in the small cap space.