• Australian (ASX) Stock Market Forum

Disadvantages of high volume stocks

Discussion in 'Beginner's Lounge' started by Vidic, Nov 15, 2015.

  1. Vidic

    Vidic

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    Hi guys,

    What are some of the pro's and con's of super high volume stocks. (20M+)
     
  2. Wysiwyg

    Wysiwyg Everyone wants money

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    >20m daily volume is not common. On the ASX they are mostly less than 1 cent speculative stocks or a stock that has had a significant announcement or a stock that has had a large cross trade. The only disadvantage I experienced was buying at the top price before price fell or I held too long and price fell back.
     
  3. skyQuake

    skyQuake

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    Those high vol 1c stocks actually do very little $value which can be deceptive in terms of liquidity.

    In the US and Canada where comm is sometimes charged on a cents/share basis this can be very expensive.
     
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