Do u trade below 1 billion cap stocks?

[innovest_11]

hi guys, just want to get some idea whether most of time u do trade below 1bn cap stocks, or more than 1 bn? Or it does not matter to u?

Or u always trade s&p, dow futures?

 

[thriftybob]

Never over $1 bb except etf's

 

[innovest_11]

Never over 1bn? so meaning most of u trade nasdaq stocks and not nyse? Would it be super volatile, so much so that will get whipsawed

 

[demoship]

volatility is based on volume (liquidity) more so then market cap.

A $2B firm w/ only 5M of it's float trading every day would be more volatile then a 100M firm w/ 1/2 it's float getting traded.

 

[innovest_11]

Yes, you are right, but is it true that below 1bn cap stocks usually will be going down, above 1 bn stocks are bigger company, more reason for going long?

 

[demoship]

not true at all, there's plenty of good small caps

 

[thriftybob]

I've only been trading AMEX stocks the past couple years. The NYSE stuff moves like turtles and the Nasdaq seems pretty overpriced on most of what I see. I prefer lower volume, like under 5 mm per day, too, so that I get maximum movement percentage wise.

 

[diligent]

yes.

 

[gaj]

all my trades are on those stocks below that cap. i would guess most of my trades are on stocks below 500mm market cap.

 

[zdreg]

Quote from thriftybob:

I've only been trading AMEX stocks the past couple years. The NYSE stuff moves like turtles and the Nasdaq seems pretty overpriced on most of what I see. I prefer lower volume, like under 5 mm per day, too, so that I get maximum movement percentage wise.

do u have friends on the amex floor?