MACD indicates trend direction and momentum shifts through moving average crossovers, VWAP shows average traded price for intraday fair value, and EMA highlights trend direction by smoothing recent price data.
Why small-cap traders often fail in mid/large caps:
1. Wrong expectations
Small-cap shorting is huge negative skew: lots of cozy little wins, then the occasional account-destroying loss. People get addicted to that smooth green P&L stream.
Large caps don’t distribute returns like that, unless you’re doing something like selling naked options.
2. Too mechanical
“Buy every breakout” or “buy every dip” is not enough. There are way more factors to weigh than just “it’s China, avoid.”
3. Not enough capital
In unlevered large caps, 20–30% annually is actually very good.
But if your account is $50k, that doesn’t feel like enough to matter, so people start forcing trades or adding bad leverage.