Does Technical Analysis Work on Small Cap Stocks?

Technical analysis of stocks involves using charts and other indicators to predict a stock’s future performance. At its most basic level, a stock that is rising, as evidenced by drawing a trendline underneath the lows the stock has made, will tend to continue moving in that direction, until the trend is broken. In theory, technical analysis should work for both large and small cap stocks.


The counter argument is that it is a real challenge to use, as the primary indicator, technical analysis to play speculative stocks. Fundamental analysis of not just the sector but the company is often required. Thus technical analysis is more valid with larger companies as they would have greater analyst and institutional interest and for these entities it takes time to accumulate positions, which often drives up prices methodically.


Fundamental analysis is important, you can use technical analysis on smaller companies; you can use technical analysis on anything. For example, try plotting the price of gas at the pumps, or the temperature for the last hundred years. You will see trends, and technical analysis can be used to help predict these future trends.


So the answer is that technical analysis can be used on both large and small cap stocks, but it is also true that two other factors should also be considered when deciding what stocks are worthy of investment.


Obviously fundamental analysis is required. Fundamental analysis involves examining the company, and the company’s industry, to determine if the investment makes sense. A chart of a horse-show manufacturer going back 200 years might look great, but fundamentally there are very few people who buy horse shoes any more (we drive cars now), so it may not be a great investment.


Finally, the perceptions of the world should also be considered. The perfect time to invest in television manufacturers was when everyone was saying that TV would not replace the radio. The ideal time to invest in internet companies was in 1995 before the world took notice. Investing in internet companies in the year 2000 was the exact wrong time to invest; it was too late, because the world had already discovered it at that time.


We conclude that using technical analysis, fundamental analysis, and common sense will lead to successful investment decisions. For more information on technical analysis you can consult with Paradigm Capital Management a Small Cap Company.


Paradigm Capital Management has the experts when it comes to Small Cap Investment and we can definitely assist you with your financial goal, contact us at (518) 431-3500
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Choosing the Right Stock Market Simulation Game

A stock market simulation game is a game, usually played online, where people can experience investing in shares in the stock market without any risks or costs or any fear of losing money when they get it wrong.


Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee but there are some that are free of charge. One does not need have prior knowledge about the stock market to join.


This is how stock market simulation games usually works: First the player must register. After registration, he or she will be given an initial sum of virtual money with which to invest in companies. You can then build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real market data.


The objective of most stock market simulation games is simple: to increase the value of your portfolio of stocks greater than that of the other game players.
Below are some tips our experts at Paradigm Capital Management suggest on choosing a stock market simulation game:


  • Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
  • Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world’s major markets.
  • Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to students and other individuals who are interested to learn more about the markets or test a strategy.
  • Choose a stock market simulation game that has a toll-free customer service phone number and an excellent e-mail support to their users worldwide our users worldwide to quickly answer any questions that the users may have. This customer service must allow the individuals to concentrate on concepts and leaves the customer service to answer all trivial questions e.g. about ticker symbols, dividends, splits, etc.
  • Choose a stock market simulation game that is easy to use and easy to teach even to those who have never invested in the stock market in their entire life.


Paradigm Capital Management Small caps stock pick services are one of the best and top penny stock services which are provided to succeed in your share market information. If you want to know more about The Best Penny Stocks and Penny Stocks information, then feel free to contact at our experts at (518) 431-3500
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