guys, how do you assess the liquidity of a stock vs your available equity? what i mean is, say, you trade 5k then almost any good stock will be liquid to you— but what if you begin to trade bigger money? how do you decide the stock size you buy and trade with? I assume you will not trade 1M dollars on just one stock with average trade value of 5M, right? In that case your 1M will be 20% of the average trade value and so goodluck finding buyers and sellers with your 1M on that stock. So, how do you calculate the max cash you invest on a stock relative to the, for example, average trading volume or value? in general how do you trade bigger amounts without resorting to so many stocks in your porfolio which may dilute profits?
submitted by /u/KF2015
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June 06, 2017 at 09:05PM
from /u/KF2015
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