Disadvantages of high volume stocks

• 15 November 2015

• #1

V

Vidic

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26 July 2015

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Hi guys,

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

 

• 15 November 2015

• #2

Wysiwyg

Everyone wants money

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8 August 2006

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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.

 

• 15 November 2015

• #3

skyQuake

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1 May 2007

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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.