The logic behind trading on low cap coins is that if someone puts up a lot of money into them, they could go up like crazy and that is something very important. I believe that we are in a market where someone could throw in a million dollars into anything at any given moment and that is why I believe that they mean something with it. Doesn't mean that it would happen, there is a good chance it may not happen as well but I believe that the chances of it is there and that makes people want to check it out.
I believe that high volume and high liquidity ones matter the most of course, but that is just less risky and less reward solution to a high risk high reward alternative.
The high volatility and low liquidity of low cap coins do matter a lot because it could change overnight. I believe that there is also the same risks of it that could actually matter a lot more when the price could also drop at the same rate as well and that is why I am not involved in any of them.
I mean a coin with under 1 million dollars volume or even under 100k volume, could just end up going from 1 dollar each to 10 cents each and then 2 cents each. Why would I risk it that much with a chance that 1 dollar each could be 10 dollars each soon. I am not saying that the higher trend chance is impossible, it's there, but it could crash as well.