The Attraction of small trading instruments

Small trading instruments can have many attractive qualities, let's go over them:

Small equity needed: You don't need a lot of capital to buy them, they are cheaaaappp!!!!

Whatever happens, your risk is limited: Your risk is limited to the capital you put in (if you buy...) , when you are new to trading, human mistakes happen, whatever mistake made or market punishment (Gap), you know in advance your biggest possible loss.

Astronomical potential gains are possible: You can put a small amount, but get big returns on that amount, thus, you are more effective with your capital allocation. If you diversify on many small instruments that have the potential to go your way, your returns will be bigger versus other investors who invest in the blue chips. It is like buying more real estate with the same money... you get a lot more rent...

Momentum is strong - light finger on the trigger BOOM BOOM: Since the price is cheap, psychologically it is easier for other investors to throw money in, and thus pump the stock up up and away to the moon!!!

Love you all :)