My question is on stock liquidity i.e. what should be the minimum liquidity to swing trade in stocks for a given position size.
For long term investing, low liquidity is ok as you can build up the position over time but in swing trading it becomes important to have good liquidity to enter and exit the stock quickly.
My position size is approx 5 lakhs and am currently trading in universe of stocks which have avg. daily traded value > 50 lakhs (mostly trading in junk/microcap stocks as they are giving the most returns)
I am also getting into stocks which keep hitting upper circuits and lower circuits which cause some problems in entering and exiting positions. This might be a separate problem but most of these stocks have low liquidity, so was thinking maybe they are connected?
@basumallick : Request you to please share some knowledge on these topics (screening stocks based on liquidity and best way to navigate circuit breakers). Thanks