Readers are probably used to the fact that small caps outperform on both the upside and the downside. But how does an investor take advantage of that?

Of course, you could subscribe to my SmallCapInvestor PRO advisory service, where we've averaged 36% per recommendation this year. But that's probably not the answer you seek (at least not yet)...

Another way to quickly find small cap names for potential investments is to follow the "new highs of the day." On Yahoo! Finance, they're called the "Price % Gainers". This is the list of the stocks that make the biggest moves in a single day, and it's nearly always dominated by small cap stocks.

Now, the small cap stocks you find on the Top Gainers list have just made a big jump in price. It should be understood that the majority of these stocks are moving on news and will give the gains they've just recorded. But, for the discerning eye, the Top Gainers list can be a goldmine for small cap stocks that are breaking out to new highs...

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