is there a maximum amount of shares that you buy vs daily average volume? or its not important?take for example your LIWA tradethanks
Number of shares to buy is function of amount of risk I am taking on a trade. So if a stock is entered at 11 and stop is 10.50 and if my account is 100000 , then if I am risking 1% then number of shares is 1000/.50=2000. I risk between 1 to 5% on a trade depending on conviction and strength of catalyst.
thats very interesting. i did not give much thought to that. if i really like the formation of the stock, my max is usually 5% of the 30 day average of volume in the stock.
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