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: April 20th, 2019
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