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High-Volume Stocks in Canada: Best Tracking Tools 2024

Written by Tim-bot
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 11/17/2023 12 min read

High-volume stocks in Canada refer to stocks that experience a large number of shares being bought and sold within a specific time frame, usually a trading day. These stocks are often the focus of traders because high volume can indicate momentum and generate opportunities for profit. Understanding how to track and trade these stocks is crucial for success in the Canadian markets.

You should read this article because it provides a comprehensive guide on trading high-volume stocks in the Canadian markets, offering crucial insights into stock volume dynamics, liquidity, and trading strategies.

I’ll answer the following questions:

  • What are high-volume stocks in Canada?
  • Why is stock volume significant in trading?
  • What are the benefits of high volume in stocks?
  • What potential risks come with trading high-volume stocks?
  • How are stock liquidity and volume related?
  • What makes a stock highly liquid in the Canadian market?
  • Why does volume matter in penny stock trading?
  • What tools and platforms are best for tracking stock volume in Canada?

Let’s get to the content!

What Are High-Volume Stocks?

High-volume stocks are shares of companies that see a significant amount of trading activity over a given period. This could be due to various factors such as market news, analyst recommendations, or changes in business fundamentals. In my years of trading and teaching, I’ve found that understanding the nuances of high-volume stocks can offer a strategic edge.

The Significance of Stock Volume in Trading

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Stock volume is the number of shares traded during a specific time frame. It’s a critical metric for traders and investors alike. High volume often indicates strong investor interest and can lead to price movement. In the Canadian market, stocks like Toronto-Dominion Bank (TD) and Suncor Energy Inc. often see high volume due to their industry significance.

Understanding Stock Volume Dynamics

Volume dynamics can offer insights into the strength or weakness of a price trend. For instance, a high volume during an uptrend suggests strong buying interest. Market data, including volume, is crucial for making informed trading decisions.

Benefits of High Volume in Stocks

High volume can provide several advantages, such as better liquidity, which makes it easier to enter or exit positions. High-volume stocks also tend to have smaller spreads, meaning less cost to traders.

Potential Risks of High-Volume Stocks

While high volume can indicate strong market interest, it’s not always a positive sign. High volume can also signify potential tops or reversals in trends. It’s essential to consider other market factors and not base your trades solely on volume.

High-volume doesn’t mean safe trading. Often, high volume is coupled with high volatility, especially in the realm of penny stocks. Volatility can be both an opportunity and a risk. It can offer quick gains but can also lead to rapid losses if you’re not careful. Understanding the volatility index of a stock along with its volume can give you a more rounded view. For a deep dive into this topic, read my article on high-volatility penny stocks.

The Relationship Between Stock Liquidity and Volume

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Liquidity and volume are closely related but not the same. A stock can have high volume but low liquidity if the shares are not easily convertible to cash. In my experience, trading in highly liquid stocks can significantly reduce risks and improve potential returns.

What Makes a Stock Highly Liquid?

A highly liquid stock is easy to buy or sell without causing a significant impact on its price. These stocks often have high volume and are popular among traders. Companies like Barrick Gold Corporation and TC Energy Corporation are examples of highly liquid stocks in the Canadian market.

Advantages of Trading in Highly Liquid Stocks

Trading in highly liquid stocks offers advantages like tighter spreads and lower slippage. It also allows for quicker execution of trades, which is crucial for day traders and those using high-frequency trading strategies.

Penny Stocks and Volume: A Special Mention

Penny stocks are low-priced stocks that offer high potential returns but also come with high risks. Volume is especially crucial when trading penny stocks, as low volume can lead to price manipulation.

Characteristics of Penny Stocks

Penny stocks are generally priced below $5 and are often not listed on major exchanges like the NYSE or NASDAQ. Instead, you’ll find them on OTC markets or the CSE. Companies like Athabasca Oil Corporation (ATH) and Denison Mines Corp (DML) are examples of penny stocks that see high volume trading in Canada.

Why Volume Matters in Penny Stock Trading

High volume in penny stocks can indicate strong investor interest or upcoming news. However, it’s crucial to be cautious as high volume can also be a result of pump-and-dump schemes. Always do your due diligence before trading these volatile securities.

Strategies for Trading High-Volume Stocks in Canada

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Trading high-volume stocks requires a well-thought-out strategy. In my years of trading, I’ve found that volume can serve as a powerful confirmation indicator, especially when combined with other technical and fundamental analysis.

Stock scanners are indispensable tools for traders who want to capitalize on high-volume stocks. These tools can filter stocks based on specific criteria like volume, price action, and more. This way, you can quickly identify potential trading opportunities without sifting through endless data. Stock scanners can be particularly useful for day traders who need to make quick decisions based on real-time information. Want to know more about how to use stock scanners effectively? Check out this guide on how to use stock scanners.

Using Volume as a Confirmation Indicator

Volume can confirm the validity of a price move. For example, a breakout on high volume is more likely to sustain than one on low volume. This is a strategy I often employ in my own trading and teach to my students.

Volume and Breakout Trading

High volume can indicate the start of a new trend, commonly seen during breakout trading. Stocks like Air Canada often see increased volume during breakout moves, making them worth watching.

Avoiding False Signals with Volume Analysis

Volume analysis can help you avoid false signals in trading. For example, a price movement on low volume may not be as reliable as one on high volume. It’s a crucial aspect to consider in your trading strategy.

Tools and Platforms for Tracking Stock Volume in Canada

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There are various tools and platforms available for tracking stock volume. These range from basic stock screeners to advanced trading platforms. In my experience, using advanced platforms can provide a significant edge in trading high-volume stocks.

While tracking stock volume is crucial, it’s equally important to understand the sectors these stocks belong to. Different sectors have different market dynamics, and high volume in one sector might mean something entirely different in another. For instance, high volume in tech stocks might be driven by product launches or mergers, while in energy stocks, it could be due to oil price fluctuations. To get a comprehensive understanding, you should also familiarize yourself with different stock sectors.

Popular Stock Screeners and Their Features

Stock screeners like those offered by NYSE or NASDAQ can filter stocks based on volume, price, and other criteria. These are useful for initial research but may lack advanced features.

Benefits of Using Advanced Trading Platforms

Advanced trading platforms offer real-time data, advanced charting tools, and other features that can aid in trading high-volume stocks. These platforms often provide more comprehensive data, making them suitable for serious traders.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Key Takeaways

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Understanding high-volume stocks and how to trade them can offer significant advantages. From liquidity benefits to strategic trading, high-volume stocks are worth the attention for anyone serious about trading in the Canadian markets.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

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What high-volume stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!

FAQs About High-Volume Stocks in Canada

Understanding high-volume stocks is crucial for trading in the Canadian markets. Here are some frequently asked questions that can provide further insights.

How Is Stock Volume Calculated?

Stock volume is calculated by counting the number of shares traded during a specific time frame. It’s a straightforward yet crucial piece of information for traders.

Can High-Volume Indicate a Potential Stock Price Movement?

Yes, high volume can indicate potential price movement. However, it’s essential to consider other market factors and not base your trades solely on volume.

Are High-Volume Stocks Always a Safe Bet?

High-volume stocks are not always a safe bet. While they offer advantages like better liquidity and tighter spreads, they can also be volatile and subject to market risks. Always conduct thorough research — and watch out for shady company leaders and other signs of a pump — before making any trades.

How Do Futures Affect High-Volume Stock Prices in Canada?

When tracking high-volume stocks in Canada, futures can significantly impact prices, particularly for companies in sectors like crude oil. Investment firms often use this data to adjust their portfolio strategies. Sites that track the TSX (Toronto Stock Exchange) provide valuable insights, and it’s essential to read the disclaimer regarding the rights and trading purposes of such information.

What Should Users Consider When Choosing a Site for Tracking Stocks?

Users should look for sites that offer real-time prices and futures data, especially when tracking high-volume stocks. It’s crucial to consider the growth trajectory of companies, and the firm’s portfolio focus. For ETFs like HUT and BTO, understanding how futures impact prices can be a part of a savvy investment strategy.

How Do Firms Use Portfolios To Capitalize on High-Volume Stocks?

Investment firms utilize detailed portfolios to manage funds effectively, often targeting high-volume stocks for growth opportunities. They rely on sites that offer up-to-date prices and information on futures. When considering ETFs, like HUT or BTO, firms assess the potential rights and disclaimers provided on platforms like the TSX to make informed decisions.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”