Market Capitalisation — Size Matters

Market cap = price x total shares: the market's price tag for the whole company. Large caps are ships, small caps are speedboats.

Level by level

Beginner

Large caps move slower with less risk of disappearance; small caps can multiply — or halve — much faster. Match the bucket to your stomach.

Intermediate

Liquidity is the hidden variable: small caps punish exits during panic (no buyers at your price). Position sizes should shrink as market cap shrinks.

Advanced

Index inclusion and exclusion mechanically move mid and small caps (fund flows); the small-cap premium exists in academia and disappears exactly when you need it (crises correlate everything).

Common mistakes

• Putting large-cap position sizes into small-cap tickets
• Assuming a famous brand means a large, safe company

Practise & tools

• Free calculators & trading journal
• Structured lessons in the Learning Hub
• Daily Chart Challenge

_Educational content only — not financial advice. Historical behaviour never guarantees future results._