Day traders try to make money by exploiting minute price movements in individual assets (stocks, currencies, futures, and options). They usuallyleveragelarge amounts of capital to do so. In deciding what to buy—a stock, say—a typical day trader looks for three things: Liquidity. A security...
When you analyze illiquid stock charts, it’s tough to see intraday chart patterns orsupport and resistance levelstoo. It’s just smart trading to stick to liquid stocks. How to Identify Good Liquid Stocks for Trading Be aware that trading liquid stocks is key to finding consistency. You don...