Hi intermilan04,
Well, you have something promising, at least in the sense that the
volume for the past quarter is up about 50 percent over the volume of
the past year. Assuming price is rising, you might want to
investigate further.
But really, there is just no "volume" to speak of. There is nobody
who seems interested in putting a *lot* of money into this issue.
That could simply mean the float stinks, or it could mean the company
stinks, or something else.
But you can't *trade* a stock like this, nine times out of ten. You
*can* *invest* in a stock like this (buy and hold on for some
considerable period). It's just not deep enough to swing money
around on a short term basis, however. I can just imagine the
spreads.
Try trading something that has a daily turnover of 10 million dollars
or so. There's enough money coming in and out that, if you get the
direction right, you won't be killed being the only one coming in or
the only one going out when you trade. You will still make mistakes.
They just won't kill you if you take care of them as soon as you
recognize them.
You certainly need to prove you can get direction right with a very
liquid stock before trying to trade illiquid ones, anyway. I realize
you are fairly new at this game, and that is just fine. Everyone
once was. But when you are new, especially, you want to get in and
out without a ripple on the pond -- invisible.
Yuki
Thursday, August 31, 2006, 12:27:47 PM, you wrote:
i> Here are the results:
i> 60days: $797,633 Dollar-Volume
i> 120days: $713,400
i> 240days: $553,708
i> intermilan04
i> --- In [EMAIL PROTECTED]ps.com,
"intermilan04"
<intermilan04@...> wrote:
>>
>> Hi Yuki,
>>
>> Let me do some simulation with Amibroker and get back to you
on this.
>>
>> intermilan04
>>
>> --- In [EMAIL PROTECTED]ps.com,
Yuki Taga <yukitaga@> wrote:
>> >
>> > Hi intermilan04,
>> >
>> > Thursday, August 31, 2006, 9:56:24 AM, you wrote:
>> >
>> > i> I believe my case was the latter. Today I was
trying to buy 900
>> > i> shares of a 5-dollar stock and got caught. I am now
making change
>> > to i> my volume limit so I won't make this mistake
again.
>> >
>> > What is the average dollar volume per day of the stock
over the past
>> > 60, 120, and 240 days?
>> >
>> > Your order is quite small of course. Five dollars times
900 isn't
>> > even 5 thousand dollars. It should be like a drop in the
Pacific
>> > Ocean when compared to the market for that stock. If it
isn't, that
>> > fact has nothing to do with either the numbers 5 or 900.
It has to
>> > do with the average closing price times the number of
shares traded
>> > over some significant period of time.
>> >
>> > Yuki
>> >
>>
Best,
Yuki
