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Trading volume

Discussion in 'Traders Coffee Shop' started by trvtrekker, Feb 21, 2013.

  1. trvtrekker

    trvtrekker New Member

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    Hi Shabbir,

    This is my first post, so if its in the wrong area please excuse (or let me know which area this belongs).

    To pick stocks, I read somewhere liquidity is an important factor and to gauge liquidity you need to monitor price of the security and the trading volume.

    But, my question is, how is liquidity a function of proce and volume? Any ideas to share in this area?

    Thanks!

    trvtrekker
     
    trvtrekker, Feb 21, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    This is not your first post but third post as per stats but the earlier posts were about introduction.

    Now coming back to your question, volume is important because when you want to sell your stocks, you should be able to sell them almost instantly and that is what I prefer.

    So if you have good volume, your stock is as good as cash.
     
    shabbir, Feb 21, 2013
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