How many shares?

Discussion in 'Trading' started by Ansare, Dec 22, 2007.

  1. Ansare


    What is average volume for a stock to reasonably be considered "liquid?"

    Also, is it fair to assume that it is dumb to buy an relatively illiquid stock you may want to sell with little hassle?


  2. liquid is more than 500 k per day

    but more is very much preferable
  3. Liquidity is relative. If you are looking to easily move 10 - 50k shares, 50 million+ average daily volume over three months is enough (INTC, MSFT). If you are trying to scalp around with 1000 shares, 3 - 5 million should be enough (MS, CY).
  4. dsq


    for daytrading i would never trade a stock with less than 2 million shares avg vol.... i used to see lo vol stocks have their vol and trading interest just dry up and then you get stuck holding the bag.....A stock with a heavy vol shows there are many established and vested participants.