Hey traders,
Everybody dreams of doubling their money.
But here’s the thing most folks don’t think about: the bigger a company gets, the harder it is to double.
Think About Market Cap
Market cap is just the value of all the shares added up.
If a company is worth $1 billion and it doubles to $2 billion, that’s not hard to imagine. New contracts, new customers, a bit of momentum — and boom, it doubles.
But if a company is already worth $2 trillion, doubling means it has to become a $4 trillion company. That’s a mountain climb, not a jog.
NVIDIA vs. AutoZone
Take NVDA. Fantastic company, huge in AI, but it’s already massive. For it to double again from here, the amount of new money that has to pour in is staggering.
Now compare that to a small, public company that maybe sells car parts or something like that. Much smaller market cap. But it’s still a solid business model. Still plenty of room to grow. For a stock like that, doubling is far more realistic.
Why It Matters for Traders
When I’m selling puts or looking for stocks I’d be happy to own, I keep this in mind.
I don’t avoid big names like Nvidia— they’re great for liquidity and steady income trades. But when I’m thinking about where the real upside might be, I know the math favors the smaller, durable names.
The Takeaway
Don’t let headlines fool you. The hottest, biggest companies on the planet aren’t always the best candidates for massive gains.
Market cap matters. The bigger the company, the harder it is to keep compounding at the same rate.
That’s why I balance my trading between the giants that give me steady income opportunities and the smaller names that still have room to double.
Trade well,
Jack Carter
P.S. September’s here… a time of year that historically wrecks big tech names. So the question now is… with the QQQ’s all-time high today… is this just the fake out before the crash? Here’s what I have to say about it.
