how to find liquid stocks?

Discussion in 'Risk Management' started by levalencia, Feb 13, 2013.

  1. I am a newbie, and I would like to know the defintion of liquidity in terms that I can use in a scan in tc2000.

    I have read many people use volume > 500.000 or 1million, but is that enough to define liquidity?

    I also heard that many people use the spread, if its very small, then the stock is liquid.

    I am not sure if I can use spread as a filter in TC2000.

    but what are your thoughts?
     
  2. as ari gold from entourage would say "boom...done"

    http://www.finviz.com/screener.ashx?v=111&f=sh_avgvol_o1000
     
  3. not very helpful! thats not what I asked.
     
  4. There are different degrees of liquidity. Usually a good place to start would be scanning for stocks that only trade an even higher number of shares per day on average like 2 million or 5 million. Those tend to have tight spreads and more posted limited orders (and less slippage with market orders).
     
  5. Mysteron

    Mysteron

    As far as I'm aware TC2000 can only use last price and volume, not spread or seperate bid or ask.

    The filters I use are:
    average daily volume >1million for S&P500 and >2million for all other US stocks. Price between 20$ and 100$. Average daily range >50c for daytrading.

    Automate the process a much as possible.

    A recent scan result:

    % 16-Feb-2013 10:42:06 73 stocks:

    ACT ALXN AMGN ANF APA APC ASML BIDU
    BWA CAM CAT CCI CELG CLF CNX COG
    COH CTSH CTXS DDD DE DECK DISCA DO
    EMN EQT EW EXPE FDO FLR FSLR GMCR
    HES HFC HLF HOG HP JOY JWN KORS
    LBTYA LMT LULU LVS LYB MNST MPC NSC
    NTAP PAY PETM PH PM PSX QCOM RHT
    ROK ROST RRC SINA SNDK TDC TIF TRIP
    TROW TSO TWC UTX VMW WDC WFM WLP
    WLT


    Earnings dates (M/D/Y), forthcoming and recent & short ratio:

    ANF $+6 2/22/2013 8:30:00 AM 3.0
    COG $+5 2/21/2013 4:30:00 PM 1.7
    JWN $+5 2/21/2013 4:30:00 PM 2.3
    FLR $+4 2/20/2013 4:30:00 PM 4.0
    WLT $+4 2/20/2013 4:30:00 PM 2.5
    ACT $+3 2/19/2013 8:30:00 AM 0.7
    DECK $+3 02/19/2013 5.6
    HLF $+3 2/19/2013 4:30:00 PM 2.5
    MNST $+2 02/18/2013 2.6
    RRC $+2 02/18/2013 6.9
    ALXN $-2 2/14/2013 8:30:00 AM 2.6
    APA $-2 2/14/2013 8:00:00 AM 2.4
    BWA $-2 2/14/2013 8:30:00 AM 6.1
    DISCA $-2 2/14/2013 7:00:00 AM 7.3
    DE $-3 2/13/2013 8:30:00 AM 3.0
    LBTYA $-3 2/13/2013 4:30:00 PM 2.1
    NTAP $-3 2/13/2013 4:30:00 PM 2.5
    TRIP $-3 2/13/2013 4:30:00 PM 7.2
    WFM $-3 2/13/2013 4:30:00 PM 2.1
    CLF $-4 2/12/2013 4:30:00 PM 3.8
    KORS $-4 2/12/2013 8:30:00 AM 1.4


    Trade whatever catches the eye.
     
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  6. oddeolab

    oddeolab

    i use similar settings for scans in tc2000 volume >1000000 or at least >700000 with an atr of >.20ish for sp500 securities. i also add some other technicals depending on what i am looking for but that should do the trick as far as liquidity is concerned.

    if anyone is interested in creating/joining a user group in tc2000 hit me up pm/email
     

  7. %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
    Mr Lev7.....;
    [a]Sure 7 figures volume is liquid enough for investing, IBD invests lower volume than for investing .For trading, short term investing; see next line,''''

    Best to do something like barchart.com 100 volume leaders[5/+ million volume];
    spread may widen or narrow..... in panic buys/panic sells.

    [c]REALTY is much lower volume than even your 500k figure, some markets;
    so investing can do it different.Wisdom is profitable to direct.