In this video I’m breaking down one of the first filters I use when I’m scanning: market cap, and how that ties into sectors. If you don’t know what you’re trading, you end up surprised by the way it moves—because small caps, mid caps, and large caps each have their own “personality.” I go over what market cap actually represents, why it matters for liquidity and volatility, and how it can influence the kind of setups you should even be looking for on a day trade. I also talk about sectors—because price action doesn’t happen in a vacuum. When a sector is hot, sympathy moves show up, volume rotates, and you’ll often see the same types of names moving together. The goal isn’t to memorize every sector; it’s to understand how grouping stocks by sector helps you build a cleaner watchlist, avoid random chop, and get more intentional about what you’re trading. If you’re trying to trade your way, this is one of those “market basics” pieces that makes everything else—tape, Level 2, and execution—make more sense.