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Home >> Stock Forums >> Maximum Quantity?

Maximum Quantity?

Sebo said: "When buying stocks that cost around $1-$5. What is the maximum amount a person should buy of this stock? I heard it tempers with the volatility of the stock? Any advice is appreciated. Thanks, Sebastian"

AlfredSokol said: "Tough question. If you buy too big of a block at once, it can affect the stock price. It has a lot to do with daily volume, TBH."

Sebo said: "using the given volume, is there a percentage u can calculate for the maximum amount that should be bought?"

AlfredSokol said: "I'm sure there is, but it's beyond my limited math skills. Let's just say none of the orders I've ever made changed the stock price! :)"

Rbreb13 said: "I use a 1-2% rule. If the volume is say 100k, I wouldn'y buy more than 1000 shares at any one time and probably limit my exposure to that amount. On heavily traded stocks. One's that trade in the millions per day. I wouldn't worry about any size block that we small timers could afford. 10-20k shares is nothing to a stock like LVLT."

Sebo said: "GREAT INFORMATION! :D Thank you"

Sebo said: "Just for reconfirmation. If you are looking at the volume to decide the 1-2% maximum bid. Do you look at the Average Volume figure or the Volume figure? Thanks in advance"