Volume/liquidity rules of thumb

nunthewiser said:

Um please tell me how you trade AUZ ?

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how much do I make if I buy at 0.1 and sell at 0.2 cents?
isn`t that 100% on my investment?
for that kind of return, dont you think I can be reaaaaaally patient?
and I`m not saying that it always works, but I`ll give it a damn good go.
that kind of trades pays my bills, so it better be good most times.

but lets not deviate from the question in this thread about volume/liquidity rules of thumb.

I have had a buy order in on AUZ at 1 for nearly 3 months . i am about halfway up the queue . My order will be reaching the brokerage open order time limit within 2 weeks . I am not likely to get filled ....

But you reckon you get filled at 1 then sell at 2 where there is another HUGE queue .......

Sorry bud , i do not believe you .

Like i said . Sounds great on the internet but try doing it in reality .......

You could always post a broker statements showing the buys at 1 and the sells at 2 and make me eat humble pie along with a tip of my hat and an apology for disbelieving you.......

No offense intended , I follow AUZ and watch its movements hence my queries.

Have a great day.

If you look at my previous post I only mentioned that I follow about 50 stocks and AUZ is one of them.
I never said that I made a profit out of AUZ as yet.

I am in the queue, just like yourself, so what is the big deal

yonnie said:

I am in the queue, just like yourself, so what is the big deal

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Cool no worries , i was under the impression that AUZ was a regular trader of yours .. As you never pointed out that you hadnt actually traded them as yet.....................Was just pointing out that i follow also and whats stated as entry 1 exit 2 is not as easy as it sounds ..........

Have a good day.

might it not have been better to ask me if I traded AUZ yet in stead of making all those assumptions and accusations???

yonnie said:

I also trade shares under 1 cent which dont have a daily turnover of >$ 6,000 but have millions of shares at the bid to provide a cushion.
Examples are AUZ, ESN, IMI, MPJ etc etc.

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Um.............there ya go champ ,hence my comments..........

No need to get snippy was a genuine querie from someone that follows a stock YOU said YOU trade ........

Thats it from me here.

when I placed an order in AUZ a while ago is that not part of trading wiseguy!!!

nothing to do with a genuine query in my book the way you carried on.

Hello

I seem to be having a lot of trouble determining what would be a workable figure for vol and turnover for a weekly system

First a little bit about position sizing.

Im trading the Small Ords and I'm wanting to purchase stocks valued between 5 cents and $5
Average position size will be 10K with a max of 20 positions.

As I mentioned the system is weekly and is a long term system.

My questions are.

1. Do I need a volume filter and a turnover filter or just one or the other?

2. How do I determine minimum weekly volume and minimum weekly turnover? Has anyone got a weekly system and could maybe help me a little here please.


I have read that a good turnover figure would be a max of 5% of average turnover. Assume each position is 10K then that means a min turnover / volume of 200K ? Being a weekly system and if I used a 10 week average then would that mean 5 days at 200k or 1 million turnover/volume average for 10 weeks? This would ensure that 200k turner would be present on any day during the week?

Can someone please help me here.

Thanks