Learn... Keep growing your financial knowledge.

Learn More

Market Capitalization

Market capitalization is the total value of a company’s shares. Large caps generally have a market value of $10 billion.

Traders need to evaluate the best opportunities when defining their trading plan. Some traders prefer focusing exclusively on one strategy.

Stocks with a higher market cap may have a smaller net change than a mid-cap stock or small-cap stock. The tradeoff is usually in the form of lower volatility, greater analyst coverage, and a better sense of market maker activity.

In the ZeroPro trading platform, traders can use the Top List to filter stocks by volume and/or price. This provides the trader with an opportunity to scan for stocks with higher market caps. The rationale for the filter is it allows the trader to create a Top List scan with stocks that have higher liquidity and therefore the trader can buy or sell shares quickly and easily without affecting the share price.

Frank S.

How to Trade Analyst Ratings?

If you follow the stock market, you will need to have a basic understanding of how analyst ratings work and their effect on the share price.

Ratings measure the expected performances of a stock. Active traders often monitor ratings to try to predict future stock values. In the short term, traders look at the rating history, whether or not it was an upgrade or downgrade.

Next, traders will often check the company's news and outlook. Analysts usually revise ratings based on a fundamental shift in earnings, their own consensus estimates, or after a major announcement.

The ZeroPro platform allows traders to create multiple watchlists. In addition, each watchlist can be configured with divider rows. This allows traders to create a category for long and short-term strategies.

Select the stocks with the highest ratings and use your drawing tools to reference the target price. Take time to learn the terminology. For example, an "Underperform" rating means the stock is projected to underperform the analyst industry coverage. Sectors can also have ratings.

The most important component of analyzing analyst ratings is called intellectual factoring. This applies mostly in the short term. Sometimes there is a theme to conceptualize, the share price and index prices seem to follow a pattern, and other times you need to wait out the market until there is an identifiable trend or continuation pattern.

Frank S.