How to choose the best small cap stocks

Small cap stocks have always been sought after by market participants and have a good mass base. On the whole, compared with large cap stocks, small cap stocks have the following advantages:

(1) The large amplitude of oscillation is an opportunity in itself.

(2) Only a small amount of capital can push up the stock price, which can attract the intervention of large and small makers.

(3) The potential themes are rich, such as stock dividend.

(4) It is easier to change equity.

(5) Restructuring is also easy.

(6) Many black horse stocks are small cap stocks.

(7) The main business transformation is relatively less difficult.

Therefore, when investors choose stocks, they try to choose small cap stocks with circulation volume less than 100 million.

The best small cap stocks should have the following conditions:

(1) The absolute price should be small, preferably less than 15 yuan.

(2) Intraday main profit is not big, better less than 50%.

(3) Volume into the dense area.

(4) Equity is dispersed.

(5) The proportion of non tradable shares such as state shares and corporate shares is small.

(6) The company's performance is fair, it must not lose money for three consecutive years, and it must not have the risk of delisting.