It is very much recommended to make this your cardinal principle in day trading stocks. Do not go for high priced stocks with low volume at all cost. In the same vein, do not go for low priced stocks with high volume also.
Once you have narrowed down the universe of stocks that you can choose for doing day trading; now you need to narrow it down further with one more rule. This rule says that choose stocks that are trading between $10 and $100 per share. Now, a price below $10 just, means that the stock is not well known and there might be some problems with the agency or the company. However, a price of above $10 per share gives an indication that the company has good health and the stock is not having severe liquidity problems. You see, liquidity in the stock that you choose is very important. To ensure, liquidity you chose only those stocks that were trading on average with a volume of one million shares.
So, enjoy online stock trading now and get help from trading tools and websites available online for free.
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