Liquid stocks

[Splat]

Hi Everyone,

I was wondering; why dont people trade the liquid stocks?
For example sun is currently one of the most liquid stock
these days. Why arent people trading this? From what
I understand people seem to go for volatile stocks. However
if a stock is liquid then there is more chance of getting filled?
Am I missing something here?

Regards,

Splat

 

[Dustin]

Because it takes an hour to make a nickle.

 

[Splat]

Hope you're not making it in the old fashioned way in the
workshop

But seriously i asked the question since I am trying to get experienced from you experienced trading fellows!

Regards,

Splat

 

[saschabr]

...and of course because you are fighting the best MMs guys.

 

[praetorian2]

I like illiquid ones b/c a poorly timed order will boot it fast and far. If something trades 100k a day and someone wants out of 200k fast, hes gonna take it down 5%+ in a day. You can tell when he cleans up and take 2-5k shares for a 2% pop very easilly. More importantly, whereas something liquid has a specialist who's mainly just making a market for nickles, in something thin the specialist takes an active interest and you can read him much better. Sun has been in a 50c range every day for months. Why bother.

 

[StockApprentice]

Considering its tight range Sun might be an excellent stock to sell uncovered (or covered) options on... if you're into that kind of thing