The trading volume helps gauge investors' interest in a stock. A high volume indicates that many investors are interested in a stock. Similarly, a thin volume indicates low investor interest. You should keep in mind that even stocks that usually trade low volumes can see a huge volume spike after reporting positive earnings.
What is a high volume stock?
You may not know the best high volume stocks under $10 to buy if you don’t know what the market considers to be a good trading volume. A stock that consistently trades more than 500,000 shares a day has a good volume.
Popular stocks like Tesla and Apple can record daily trading volumes of more than 100 shares. Most penny stocks only trade a few thousand shares a day. If you are in the market for high volume and cheap stocks to buy now, your best bet would be stocks that trade more than 1.0 million shares a day.
Why does high trading volume matter in the stock market?
If you are a beginner investor, why should you insist on buying high volume stocks? First, it's easy to get in and out of a high volume stocks. In contrast, you may have to wait a long time for your buy or sell order to execute in a thinly traded stock.
With high volume stocks, your order may not impact the stock’s price, which allows you to buy or sell the stock at a favorable price. In contrast, with low volume stocks, your order may cause a huge price movement, which could diminish your returns.
How do you know if a stock is high volume?
Many people start evaluating stocks by looking at the price. If you have identified some stocks under $10 that look good for your portfolio, how do you know that they have the right trading volume?
There are many ways that you can check a stock’s trading volume. Most stock charts will display the trading volume, the price, and the market cap. Many trading platforms show stats like the stock price and trading volume to help investors with their evaluation. You can even filter stocks by trading volume in some trading apps. You can also check a stock’s trading volume on websites like Google Finance and Yahoo Finance.
What are the best high volume stocks under $10?
If you have watched stocks in industries like e-commerce and electric vehicles soar to all-time highs in recent months, you may wonder if there are still good high volume stocks under $10 to buy right now.
Investors looking for cheap stocks have plenty of options. Some of the best high volume stocks under $10 right now are Nokia, BlackBerry, and Sirius XM Holdings.
Nokia is one of the leading vendors of telecom network equipment. Currently, mobile operators around the world are focused on upgrading their networks to 5G. Nokia is in a favorable position to benefit from the anticipated high demand for 5G equipment in the coming years. Nokia trades more than 20 million shares a day.
BlackBerry stepped away from making handsets to focus on providing security. The company's clients include governments and the world’s largest corporations. As a result of the COVID-19 pandemic, many organizations are shifting to remote work to reduce crowding in offices.
However, hackers have also stepped up their game to exploit remote work networks. BlackBerry will continue to see demand for its security service as companies, colleges, and churches puts more of their activities online. BlackBerry stock records a daily trading volume of more than 15 million shares.
Sirius XM Holdings provides audio entertainment. The parent of Pandora makes money through advertising and subscription sales. Siri moves more than 10 million shares in daily trading volume.
The other high volume stocks under $10 that may catch investors' attention right now are Mitsubishi UFJ Financial Group and Sonoma Pharmaceuticals. Mitsubishi is a Japanese financial services company. Billionaire investor Warren Buffett has demonstrated that there’s something good about Japanese companies. Sonoma will likely benefit from the deal with Crown Laboratories to sell its over-the-counter products in the U.S.