I was looking at some of the financial markets in the Eastern parts of the world. I noticed that some of even the largest companies of those regions have daily volumes of 10-80K. I can’t help but feel that there’s a market to be made in many of these securities with prices and volumes so low. What’s the best way to trade in such markets? What strategies do you employ for thinly traded securities?
(Other info: Yes, I have a high tolerance for risk. I’m not a newbie to investing/trading…but thus-far I have only traded NYSE listed securities.)
I would recommend ETFs for now until the markets become a bit more liquid. During a meltdown, good luck getting out of your positions, especially if there is political risk.
Actually, in one of the markets, they are working towards creating ETFs… they don’t have any yet! …hmm…potential market opportunity haha…I wonder if there is a way for a layman to set up a fund there and start selling ETFs?
Also, just run a screen of any stocks that say, trade less than 100K shares a day on average, and are priced above say, $80bucks. Not only thin, but the spread is often wider too.
Investable only in PA (personal account) likely means that you could not purchase enough shares to move the needle if you are managing other people’s money. But in a personal account (unlikely to have hundreds of millions of dollars) you might be able to make it happen.
