Liquidity — what the heck is it and why should it matter to you? Tune in for Tim Bohen’s explanation of this key indicator. Plus, learn why it’s important and which criteria you should look for ... And, of course, find out how to plug it into your scanners and screeners.
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Advanced Stock Trading Tips: https://www.youtube.com/watch?v=OXLs_-PgMUk&list=PLWWz2BSabm3YCZdk7ocrBXGJaLVXXFUYb
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When it comes to trading — day trading especially — you mostly want to look at stocks that trade at least a million shares a day or are projected to trade a million shares a day.
So let’s say you find a stock in pre-market hours ... It’s up big, it has news, and you're interested in it. But there’s a problem: It's only traded a few thousand shares.
It's highly unlikely that this stock will hit your volume forecast of a million shares a day. That million-share mark may sound high, but you want to trade stocks that have the biggest potential to move. Especially if you’re a newer or intermediate trader.
If you have a small account, you wanna grow it, right? But if you're trading illiquid stocks, you can end up in a tough spot — stuck in a trade and losing BIG.
Some days, there are no big movers that hit your liquidity target. That’s OK! That’s a great day to take care of other priorities, focus on your strategies, build your trading plan, or even just take the day off.
So why is liquidity so important? The biggest reason is that liquidity makes stocks move. It's because there are more buyers than sellers. You want that mania. More eyes, more buyers, more traders — all that heightens the potential that the stock will move and maybe even spike.
But if the volume isn’t there to support that spiker, you can end up in a trade that fails. That's why liquidity and volume are so important.
If you're in an illiquid stock, it can be super hard to get out. That’s called slippage. If you have a wide spread on an illiquid stock, you might want to sell on the ask ... but you can't. No bidders are willing to take your offer.
You could be up on this position nicely, but if you can't sell, you have to start dropping your price. That can obliterate your profits. Don’t put yourself in that position!
#StocksToTrade #StockMarket #LiquidStocks
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
🔴 Subscribe for more free Stock Trading tips: YouTube.com/StocksToTrade
Share this video with a fellow Trader: https://youtu.be/U1UAhTjt76Y
✅ Links we mention and recommend:
Try StocksToTrade for $7: https://stockstotrade.com/14daytrial/
Get our FREE weekly watchlist here: https://stockstotrade.com/watchlist
Check out the SteadyTrade podcast: https://steadytrade.com
✅ Recommended video: https://youtu.be/API2kdB8Jf4
✅ Recommended playlists:
Stock Trading 101: A Day Trader's Guide: https://www.youtube.com/watch?v=G_v3GMkKCjk&list=PLWWz2BSabm3bG64ohfJ-CnnVTjLCWwvei
Advanced Stock Trading Tips: https://www.youtube.com/watch?v=OXLs_-PgMUk&list=PLWWz2BSabm3YCZdk7ocrBXGJaLVXXFUYb
StocksToTrade Software Tips and Tricks: https://www.youtube.com/watch?v=jiTi-chHNyo&list=PLWWz2BSabm3ay_lvQC9JN_1niB78bI7ga
Weekly Trading Recap Videos: https://www.youtube.com/watch?v=_n0XaDt1XFY&list=PLWWz2BSabm3b3-4DcEx98TzNPLAKcq6ES
✅ Follow StocksToTrade on social media:
Instagram: https://www.instagram.com/stockstotrade/
Facebook: https://www.facebook.com/StocksToTrade/
Twitter: https://twitter.com/StocksToTrade
When it comes to trading — day trading especially — you mostly want to look at stocks that trade at least a million shares a day or are projected to trade a million shares a day.
So let’s say you find a stock in pre-market hours ... It’s up big, it has news, and you're interested in it. But there’s a problem: It's only traded a few thousand shares.
It's highly unlikely that this stock will hit your volume forecast of a million shares a day. That million-share mark may sound high, but you want to trade stocks that have the biggest potential to move. Especially if you’re a newer or intermediate trader.
If you have a small account, you wanna grow it, right? But if you're trading illiquid stocks, you can end up in a tough spot — stuck in a trade and losing BIG.
Some days, there are no big movers that hit your liquidity target. That’s OK! That’s a great day to take care of other priorities, focus on your strategies, build your trading plan, or even just take the day off.
So why is liquidity so important? The biggest reason is that liquidity makes stocks move. It's because there are more buyers than sellers. You want that mania. More eyes, more buyers, more traders — all that heightens the potential that the stock will move and maybe even spike.
But if the volume isn’t there to support that spiker, you can end up in a trade that fails. That's why liquidity and volume are so important.
If you're in an illiquid stock, it can be super hard to get out. That’s called slippage. If you have a wide spread on an illiquid stock, you might want to sell on the ask ... but you can't. No bidders are willing to take your offer.
You could be up on this position nicely, but if you can't sell, you have to start dropping your price. That can obliterate your profits. Don’t put yourself in that position!
#StocksToTrade #StockMarket #LiquidStocks
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
Watched this video 5/19/2022 fundamental review 🙂
YES! Thank you ! CLEAR SHORT AND SWEET ! 👌👌👌👌👌👌
Great video but the question remains unanswered, how do I find those liquid stocks, what particular question I place on Google or on a trading app.
Thanks for the Video. But is it always has to be million share or does it depends on Average volume of particular share?
How does one practice day trading (paper trading) with the knowledge they have learned from studying while working a day job?
Thank you.
What stocks trading @ that volume? Would've been nice to hear @ least 1….lol
liked the way you explained the stuff, can you please make a video on pivot points. Thank you
Thanks Tim
Thanks for this Tim Bohen👍🏽👍🏽👍🏽
Thanks Tim Great video!! … 🙂
What is the best news service that reports what stock may be moving the next day?
Should I use this strategy with Otc stocks also? With OTC stocks not having premarket trading what is a good opening volume they should have to reach 1 million in volume for the day? Thanks
Thank you SO much for this content! Stocks to Trade Software is WELL worth the cost!
Thanks Tim! Great stuff explained well
Great heads up Tim !!!
It was a great video i always watch your videos
You're the best
Can you guys make a video about split reverse? Im having so much trouble understanding how that work I’m so confused about if that is a good thing or bad when it comes to trade a ticket
Thank you for all your important videos
Hi Guys, did anybody from you received Error Code 100 in STT platform? I am using Interactive Brokers account.
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