The one and only goal for each investor is to get in low and sell high.

That sounds simple, right? Long term investors will acknowledge how hard it is to successfully apply this easy sounding principle. It takes years and years of hard working, and, even more importantly, losing money before an investor can really apply this rule in a repetitive way.

As markets will selling off in January and February of 2016, we were looking for the stocks that held up best. Our theory was very simple: if markets would recover (in other words, fail to break down), then investors had to add the companies that kept strong during the sell off, as those companies would be future outperformers once markets would recover.

We already mentioned that technology is a place to be, as detailed in Nasdaq Reaches New All-Time Highs In 2016, Outperforming World Stock Markets. In this article, we show 3 small tech stocks with a juicy outlook. They have proven to be outperformers. Investors should not chase prices higher, but wait for a pullback to get in. We firmly believe that the small tech space has some names with an extremely bright outlook.

Small cap biotech outperformer in 2016

Back in May of 2016, we wrote that Horizon Pharma had a very appealing chart setup, and it was a matter of time until the stock would break out and be among the leaders in biotech (read 2 Fascinating Stock Charts: Apple And Horizon Pharma). Our call was spot on. The breakout point was around $17. We got in around that point, and are looking at almost 40% returns in a matter of 2 months.

Small cap cloud outperformer in 2016

Another company which we identified already back in January (!) is TIO Networks, provider of payment processing software in the cloud. We recommended to watch the $1.70 closely, as that was strong support. TIO Networks was an outperformer at that time, and, as expected, became a sector leader as markets recovered (read Two Super Growth Stocks Testing Long Term Support, Potential Buy). We put our money where our mouth was, got in around $1.80 and are looking at 30% gains.

Small cap mobile outperformer in 2016

In the mobile space, we identified MITEK Systems as one of the potential outperformers. The stock refused to break down, even as markets were extremely volatile. That was a strong sign, which we did not ignore. The stock moved strongly higher since March, outperforming its peers. It is forming a bullish flag right now. If it breaks above $8, it signals that it wants to go much higher in the months and years to come.