How do you actually go about filtering or looking for those stocks that has average traded value that can meet your requirement very easily? Any screener tool, of course this I’m using Investagrams as an example, but you can actually use other screening tools out there, whichever you can find as long as they provide this filter that allows you to filter by average traded value. So in this case, what I’m suggesting is to actually at least look at average value of more than one million, which means that the average trade value over the past one month has been more than $1 million.
Let’s say you have $100,000 of equity, or capital base, or starting capital, then more than one million will be good enough for you. So anything less than $100,000 of starting capital or equity for a average trade value of more than 1 million will be good enough for you. However, if you have a starting capital base of $1 million, for example, then obviously this average trade value might not be liquid enough for you, you might have to choose something like more than 10 million kind of average trade value. So I hope you get what I’m trying to explain with this perspective.
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