penny stock trading rules

Do you know a liquid stock simply by looking at the volume?

Hi,.
1. if a liquid stock is one with high volume that ca easily be traded, especially if its not a penny stock, how high can the volume be for you ot know its got liquidity, is there a rule of thumb? a millions, or more?
2. Could you please list a number of liquid stocks, how can you tell one/some on etrade, yahoo finances, etc

Anything over a million shares/day AVG. is a liquid stock. Some say anything over 500k is pretty liquid.
Liquidity can be thought of in two different ways, though, both of those ways are related.

Liquidity is 1-size of market, which in turn affects 2- the speed of transactions. And usually the bigger the market the more liquid it is. But you can have some-what solid liquidity in terms of speed (i.e. getting out in anything less than 3-5sec, and no more than 3-5sec), but the spread can be horrible.
Illiquid markets would be something like LEAPS. You might have to wait days maybe in order to get out of a LEAP position.

But a rule a thumb would be anything AVERAGING over 1million shares/day has good liquidity, and of course, more shares a day = more liquidity = quicker trades & tighter spreads.

Hope this helps!

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