Understanding risks, recognizing market cycles, evaluating fundamentals, analyzing the sector, assessing management, reviewing financial strategies, differentiating between valuation types, employing a phased investment approach, and preparing for volatility. You can navigate the complexities of small-cap investing with greater confidence and avoid greed, fear which are elements which lead to wrong decisions. Even after all the effort, be ready to go wrong. That is what small caps are all about and if you get it right then all mistakes are pardoned. But the fact is that even the promoters of these companies don't get it right in the short term.
