I know many don't trade shares which don't have decent enough volumes. (Simon, your name comes to mind). I want to know how would you define a share that is liquid. Do you look at number of shares traded? Or Value traded? Or number of deals for the day/week/year? A share like CMH is solid but not frequently traded(prob due to its tight shareholders). A share like DRD is (basically crap??) but much more frequently traded than CMH. Are forumites guilty of trading certain shares because they are well known or coz they are the flavour of the week or maybe coz they just sound sexy?
Look Sam...no one here really knows what theyre doing. They're all educated/informed gamblers. This is not an exact science and anyone who pretends to know what theyre doing is about as deranged as Bobby Mugabe. The best way to make money is to buy yourslef a good set of tarot cards and read your horoscopes carefully. Other traders will insist that i am insane, but who here could have predicted that kortbroek(marty van Skalkwyk) would have been envvironmental minister like i did?? This may seem like ramblings of an alcoholic, but i dont drink anymore....or any less! By the way, watch DGC rock and roll..
Samir, the question you must ask is if you will be able to get in and out at the price you want. If you get a buy signal, but have to wait two days before your order gets filled (and the same when you want to sell) due to low volumes, then you are not going to be happy. Shares like that should be avoided.
I want some buyers when I want to sell, but is not scared to trade shares with low volumes as long as the average volume traded per day is at least 6 times as much as the amount of shares that I want to hold.