Small Caps Are Soaring... but Stay Cautious

[Trading With Larry Benedict]( Small Caps Are Soaring… but Stay Cautious By the Opportunistic Trader Editorial Team Small-cap stocks rallied on Thursday after inflation data came in lower than expected… Lower inflation means interest rate cuts are likely to come as early as September. And that helps smaller companies, which often rely on borrowing money to grow faster. The Russell 2000 Index, which tracks small caps, surged 3.6% on Thursday. It was the index’s best day since November 2023. And some smaller AI stocks continued to rally on Friday. For example, MicroVision (MVIS) was up 15% that day, and SoundHound AI (SOUN) climbed 17%. So it may seem like a great time to bet on a small AI company. After all, it could become the next Nvidia. But as Larry explained in [his essay on Wednesday]( that could be a huge mistake. He wrote: For every Nvidia, there are countless other stocks that do practically nothing at all. The problem is that if you keep looking for the next Nvidia, you’ll miss other less exciting but still profitable trades. The way I turned things around was to stop looking for big wins. Instead, I did the opposite… I started treating trading as a business where I needed to bank regular gains. By taking regular profits, no matter how small, I got into the habit of trading profitably. So stay cautious… and don’t let yourself get swept up in the hype around the AI boom. In the meantime, you can catch up on this week’s content by checking out the links below… Recommended Link [Legendary Trader: “The Next 30 Days will be Critical for AI Stocks”]( [image]( Tom Gentile is a legendary trader who predicted the rise of Nvidia back in 2019… Giving his readers a chance to turn $10,000 into more than $320,000. You won’t believe what he’s predicting for AI stocks next. [Click here now to see this exclusive interview because the next 30 days will be critical.]( -- --------------------------------------------------------------- [thumbnail]( [How We Traded This Year’s Most Hated Stock for Double-Digit Gains]( Sometimes ignoring all the experts and following the chart instead leads to the best trades… --------------------------------------------------------------- [thumbnail]( [Why Bad News Often Leads to Market Rallies]( This simple concept will make a massive difference to your success as a trader… --------------------------------------------------------------- [thumbnail]( [Why You Shouldn’t Look for the Next Nvidia]( Today, I want to share how a shift in my approach to trading led to life-changing gains. --------------------------------------------------------------- [thumbnail]( [How I’m 10x-ing My Gains in AI’s “Final Phase”]( Tom Gentile reveals how he’s booking 10x profits in the “Final Phase.” --------------------------------------------------------------- [thumbnail]( [What Type of Trader Are You?]( Today, I want to share how I found the strategy that suited me best. And hopefully that helps you get the most out of your trading… --------------------------------------------------------------- [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](