IBD will every Thursday publish a small table with unique boutique s with high float turnover ratio. As a general thumb rule if a stocks float turnover ratio increases significantly, it shows higher demand for stock. stocks with higher Turnover ratio are in demand. That is one of the reason there are profitable opportunities for traders who think through the problem and understand how liquidity changes over a life cycle of a stock. There are lot of academic studies that have studied this phenomenon and they show the returns on low liquidity stocks tend to be higher than the returns on high liquidity stocks. “They will have a new ratings system that will count linear TV as well as streaming,” says Charlie Bobrinskoy, vice chairman and head of investment group at Ariel Investments. Warren buffet is referring to investors who let their head and not their guts, deciding their investing decisions. The financial advisors need to maintain a high level of confidentiality as investors handle them a lot of not to be mentioned information. stocks with high stock Turnover Ratio are stocks in play or in demand and for active short term trader they offer lot of opportunities on both long and short side.
stock Turnover ratio above 10 is a indicator of good demand. Scan to a liquidity break on stock with below average liquidity. If you attend one of the advance courses from IBD, then sometime they talk about this and how they use it to scan stocks in their database. Scan for stock Turnover Ratio if you want to find stocks starting their liquidity cycle or if you want to find stocks in play. High stock Turnover Ratio above 30 can help you find very explosive moves. If you are trading short term strategies or day trading understanding the liquidity cycle can help you design so many strategies. Neither stock-Trak nor any of its independent data providers or partners, are liable for incomplete information, delays, or any actions taken in reliance upon information contained herein. Technical analysis generally assumes that a stock’s price reflects all available information and that prices generally move according to trends.