By L.A. Little of, author of Trade Like the Little Guy.

"We have nothing to fear but fear itself," Franklin Delano Roosevelt would say, and this is true of small-cap stocks as well. Small- and micro-cap stocks can provide enormous gains. But they do carry greater risk.

The key to success in this arena is to ferret out those that have the greatest potential, to use wise money management and stops, and to keep looking for others that are performing well. Over the past couple of weeks, I've looked at a number of these smaller stocks and I'll end the year looking at one more -- KVH Industries ( KVHI), which develops, manufactures, and markets mobile communications products.

KVHI has both domestic and international customers as well as the big-spending U.S. government. The company's chart shows a pattern of bullish moves. Long term, it is on the verge of breaking higher in a larger way.

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