Do u trade below 1 billion cap stocks?

Discussion in 'Trading' started by innovest_11, Apr 1, 2007.

  1. hi guys, just want to get some idea whether most of time u do trade below 1bn cap stocks, or more than 1 bn? Or it does not matter to u?

    Or u always trade s&p, dow futures?
     
  2. Never over $1 bb except etf's
     
  3. Never over 1bn? so meaning most of u trade nasdaq stocks and not nyse? Would it be super volatile, so much so that will get whipsawed
     
  4. volatility is based on volume (liquidity) more so then market cap.

    A $2B firm w/ only 5M of it's float trading every day would be more volatile then a 100M firm w/ 1/2 it's float getting traded.
     
  5. Yes, you are right, but is it true that below 1bn cap stocks usually will be going down, above 1 bn stocks are bigger company, more reason for going long?
     
  6. not true at all, there's plenty of good small caps
     
  7. I've only been trading AMEX stocks the past couple years. The NYSE stuff moves like turtles and the Nasdaq seems pretty overpriced on most of what I see. I prefer lower volume, like under 5 mm per day, too, so that I get maximum movement percentage wise.
     
  8. yes.
     
  9. gaj

    gaj

    all my trades are on those stocks below that cap. i would guess most of my trades are on stocks below 500mm market cap.
     
  10. zdreg

    zdreg


    do u have friends on the amex floor?
     
    #10     Apr 1, 2007