A stock’s trading volume indicates how many times it is traded on a daily basis.
Simple enough to understand.
But for such a simple concept, trading volume can have a huge impact on a company’s stock price!
Some stocks consistently have a ton of daily volume. These stocks are usually higher marketcap companies, with billions of shares outstanding and millions of shares being traded each day.
Volume spikes and decreases typically have very little impact on the stock price of these large companies.
But what about smaller companies with lower average daily volume?
A sudden increase or decrease in volume can send the share price skyrocketing, or plummeting in a matter of minutes.
For this reason, it’s important to monitor and analyze the daily trading volume of a stock before investing.
If you prefer to trade stocks with lower risk, I would avoid investing in stocks with very low average daily volume.
Conversely, if you are an investor looking for greater volatility and more stock price movement, you will likely find it in low volume stocks with sudden spikes or dips.
Using the DiscoverCI Stock Screener, we scan the market for the highest volume stocks each day.
We also analyze the stock beta, and include it in the list below. The beta of a stock measures how volatile it is compared to the overall market.
A beta of 1 means that if the overall market goes up or down, the stock is likely to go up or down by the same percentage.
Stocks with a beta of less than 1 average lower percentage swings than the overall market.
And high beta stocks typically experience larger price fluctuations than the overall market.
For example, a stock with a beta of 2 averages a price change of 20% when the overall market changes 10%.
If you’re looking for a measure of risk and stock price volatility, a stock’s average daily volume and beta are useful indicators.
The list is sorted by today’s volume, and includes the beta, marketcap, average daily volume and last stock price.
We update this list daily. Last updated: August 26th, 2019
Stay up to date with our latest trade ideas, stock market news, tips and posts.
We respect your privacy and take protecting it seriously.
© 2018 DiscoverCI
Disclaimer: DiscoverCI LLC is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on DiscoverCI.com represent a recommendation to buy or sell a security. The information on this site, and in its related application software, spreadsheets, blog, email and newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. In no event shall DiscoverCI.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any product, content or other material published or available on DiscoverCI.com, or relating to the use of, or inability to use, DiscoverCI.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related blog, email and newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way.