6 ms·

Stability comes with volume.

• adventured 13y ago
  Not inherently true, volume by itself is no guarantee of stability. In markets, volatility can and often does skyrocket on large increases in volume. Extremely high volume stocks can be unstable. A classic example would be Sirius, which at times when it was a favorite of day traders would swing wildly while moving hundreds of millions of shares per day. All you need to create instability in a case of high volume, is enough additional volume. Large volume ups the ante on how much additional volume may be needed to cause instability, but doesn't guarantee anything.