Stocks with no volume

[andrew_c2o]

Do people stay away from stocks that often have no trades done?

 

[It's Snake Pliskin]

It could represent illiquidity if a stock is not being traded. Be careful. :dunno:

If there are no trades happening, I ask myself Why? and how could you off load your holding? before buying.

 

[ob1kenobi]

Do people stay away from stocks that often have no trades done?

As a general rule, yes!

Some basic reasons for this:
A) As Tina mention, it may represent a lack of liquidity, which may in turn hamper the return on investment I am looking for.
B) If no one is buying (or very few), then to whom will you sell your shares to when you want to sell?
C) The law of supply and demand in Economics often applies here. If supply is high, demand is low, price is cheap. If supply is low and demand is high, price is expensive.

These are generalisations I know and there is the odd exception to every rule but experience tells me, these are important and form a part of my trading plan.

Good luck!