How do stocks have such high daily volume?

[Narcissus 9]

I’m a new investor and trader. One thing that I have been told is volume is an important factor in trading. When looking at a stocks volume for a day, even for a stock that is little known, it’s something like 4 million 300 hundred thousands shares volume for the day. And other stocks have volumes that are 10 million shares plus for the day.

My questions is how do stocks have such high volumes? Are there really actual people buying and selling 15 million of shares of some company like SIRIUS in a say when the stock barely moves?

 

[Sekiyo]

I prefer dollar volume than volume alone.
10,000 shares @ 1 or 100$ the share is different.

In the former they exchanged 10,000$ vs 1,000,000$ in the later stock.

A lot of Penny stocks trade huge volume for nothing …

Volume vs Average volume is meaningful.
If a stock trade 2x or more his average daily volume it means something has likely changed.

15 millions share can be bought and sold without the stock even up or downticking. Depends on the depth of the book.

Most of the time it’s better to check for %Change and I filter stock trading less than 100,000$ per day.

Volume x price > 100,000$ or even 1M

GME (meme stocks) was trading more than 1M$ per day before to 10x

 

[Nobert]

Sometimes, based on volume, you can guess, that a big institution, is accumulating a large position in one company or another.
(I think institutionals make 90% of the vol these days. Might be wrong)

Thus, an investor, can use this information to open a long position, given the he did his own homework as well. (researched the company)

 

[TheMordy]

My questions is how do stocks have such high volumes? Are there really actual people buying and selling 15 million of shares of some company like SIRIUS in a say when the stock barely moves?

It's mainly Hedge funds trading against each other (heard from a hedge fund manager), not the retail guys.
The big players are each trying to get in low, and sell high, then short back down...

 

[Sergio123]

Not hard to fathom with Machines and Algos.
Black Rock holds about 62 million shares of SIRI. Vanguard holds about 56 million. State Street around 24.5 million shares.
Even if retail doesn't buy that many shares of SIRI directly we buy it through the ETFs that trade the shares for us.

 

[Day Trader Studio]

I’m a new investor and trader. One thing that I have been told is volume is an important factor in trading. When looking at a stocks volume for a day, even for a stock that is little known, it’s something like 4 million 300 hundred thousands shares volume for the day. And other stocks have volumes that are 10 million shares plus for the day.

My questions is how do stocks have such high volumes? Are there really actual people buying and selling 15 million of shares of some company like SIRIUS in a say when the stock barely moves?

Common now, you don't think retail traders are the ones moving the market? Excluding dark pools, pension funds and family offices, Hedge funds like Citadel trade a descent portion of the volume...

 

[Scataphagos]

I’m a new investor and trader. One thing that I have been told is volume is an important factor in trading. When looking at a stocks volume for a day, even for a stock that is little known, it’s something like 4 million 300 hundred thousands shares volume for the day. And other stocks have volumes that are 10 million shares plus for the day.

My questions is how do stocks have such high volumes? Are there really actual people buying and selling 15 million of shares of some company like SIRIUS in a say when the stock barely moves?

1. Yes, there are huge volume trades by those with BIG bucks.

2. You have been told volume is an important factor in trading. The Bozo whot told you that is wrong.

KISS, baby! (Part of KISS is "no volume".)

 

[murray t turtle]

I’m a new investor and trader. One thing that I have been told is volume is an important factor in trading. When looking at a stocks volume for a day, even for a stock that is little known, it’s something like 4 million 300 hundred thousands shares volume for the day. And other stocks have volumes that are 10 million shares plus for the day.

My questions is how do stocks have such high volumes? Are there really actual people buying and selling 15 million of shares of some company like SIRIUS in a say when the stock barely moves?

%%
MAINLY buying penny stocks[under $5] is such a bad idea generally;
like Larry mint Hite nailed it.
WOULD you buy a buggy whip co ,great volume even though it got cheap + cheaper\ not if you had sense you would not, even with your nickname??
Actually i do pick up pennies in my path, not on wall street.
The penny stock you noted peaked @$60.00 + then peaked lower @$7.50. Still going down, good down volume.
So looks like BNY, SST...... sellin' it mostly\ people + computers, sellin' ........NOT a prediction or a buy suggestion.

 

[Narcissus 9]

I’m buying penny stocks to trade fast and not to invest in. Penny stocks often go up 50%, 100% and even more in one day while many of these big name stocks like Apple, Google etc barely move or at most maybe 5% or less in a day. The potential of penny stocks to explode is what attracts me to them although they are risky they also have the potential for great immediate rewards.