Up until now, I've mostly traded mega cap stocks which I thought it's somewhat safer. However, lately I've been looking into small/medium market cap stocks because the percentage of ROI seem much more enticing. My main concerns for these small/medium cap is liquidity. For example, mega cap, you don't need to worry much about liquidity because you can always get in/out as you wish. However, I noticed that these small/medium cap have very little liquidity on volumes. Some of them have daily trading volumes of less than 1M. Is this a major factor when it comes to invest in small/medium cap? Someone who's been trading this type of stock, whats your thought/opinion?
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