Volume as criteria

investopia

Guest
7 0
Hello,

I am relatively new to trading and I currently am paper trading with relatively amounts of capital - about $4000. I have an average 6 mo volume criteria of 2 million. 2 million was quite arbitrary, but I did feel it made sense as it provide the potential for power behind a move.

I am employing a trading range strategy and just started my screen tonight. It seems if I lower my average volume requirement to 100K to 200K I get some cheaper stocks that would allow me a greater reward/risk ratio (that still fits within my risk criteria).

My question is...how important is the quantity of volume as a screen criteria...I understand volumes role with price, and that seems relative to the equity; but should I be avoiding stocks that have a volume less than.....?

Thanks
 
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