- The importance of high dollar volume stocks
- Where to find high dollar volume stocks (SG market)
- How to add them to your Lim & Tan watchlist
THE IMPORTANCE OF HIGH DOLLAR VOLUME STOCKS
So often, many clients buy stocks without looking at the stock's dollar volume. It is recommended to look out for high dollar volume as your first preliminary criteria when choosing a stock. To me, having high dollar volume means liquidity, and subsequently means a form of safety.
This article gives a good explanation: Dollar Volume Liquidity Definition
WHERE TO FIND HIGH DOLLAR VOLUME STOCKS (SG MARKET)
In Singapore, many of us tend to find this answer by looking at "top volume" or "top stocks" of the day. Top volume or top stocks will give you a list with the highest volume but not necessarily the highest dollar volume. Many times, penny stocks are on the list. Otherwise, smaller stocks with sudden short-term spikes in volume can be a top volume and mislead us.
Instead, look at "top value" or "top turnover", which is the common lingo used here in Singapore for top dollar volume.
Here are 2 methods where you can find the top value or top turnover stocks:
Method 1: SGX Website - look under Top Value
www.sgx.com/securities/securities-prices
As a clarification, the word "value" here doesn't refer to good value/good bargain/good quality/good fundamentals. It refers to dollar volume/turnover/monies transacted.
SGX Website
Method 2: ShareInvestor Website - look under Top Turnover
www.shareinvestor.com/prices/stock_prices.html#/?filter=DA03&type=ranking&page=1
ShareInvestor Website
HOW TO ADD THEM TO YOUR LIM & TAN WATCHLIST
Now, let's search for SingTel on the Online Trading Platform. The Online Trading Platform is demonstrated here, but you can also add them via the Mobile Apps.
Online Trading Platform
Then add SingTel to your watchlist:
On the Pop-up page, select your watchlist and then click SAVE.
*Note: If you don't see the pop-up page, you will have to first undo your Pop-up blocker.
That's it! You've now got your top dollar-value watchlist.
A point to note: the list changes everyday because the value or turnover changes everyday, but will stay similar. Check SGX or ShareInvestor everyday to see which are the top ones.
Well, now you know which stocks are highly traded by institutional investors.
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