Strong and weak liquidity of stocks

Mondo Finance Updated on 2024-01-31

The greatest value is its liquidity, and liquidity means liquidity, and if it can't be liquidated, if it can't be turned into cash, then the attractiveness of this kind of attraction will drop dramatically.

*Liquidity is divided into strong liquidity and weak liquidity. Strong liquidity of the ** transaction is active, and there are constantly large transactions;The ** transaction of weak liquidity is sparse, and there are very few buy orders for a long time, because the undertaking is quite weak, and once the chips are sold, the stock price will inevitably suffer a heavy setback.

*'s liquidity is proportional to the size of its circulation. The liquidity is weak when the circulation is small;The larger the circulation, the greater the liquidity. Generally speaking, popular stocks are highly liquid and unpopular stocks are weak;The ** liquidity of the stock price bubble is weak, and the ** liquidity of the stock price in the safe zone is strong.

The strength of liquidity is very important for the main force, and the stronger the liquidity, the more beneficial it is for the main force, so that when they open a position, they can absorb enough cheap chips;And when it comes to shipping, it is very convenient to empty the chips.

Therefore, when investors choose, they must choose those with strong liquidity and avoid choosing those with weak liquidity.

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