GoldWTcal 1 Posted April 23, 2022 Good morning, A question about picking the candidate stocks for day trading. On Yahoo Finance, for each stock, we can check the " % of Float shares Held by Institutions". For example, the stock symbol PINS, ( Pinterest Inc. ) currently has a 78.50% of its float shares held by institutions. The question is, when search a stock for day trade, do we like a stock that is held by institutions with high percentage or low percentage? Would a stock with more than 50% held by institutions good for day trading or not? Are there certain screening criteria - say normally above a certain percentage ( held by institutions ) , then the stock is not good for day trading? I understand there are quite a few factors when picking stocks, but the above question is about the institution holders percentage. Share this post Link to post Share on other sites
Alastair 110 Posted April 25, 2022 On 4/23/2022 at 11:52 AM, GoldWTcal said: The question is, when search a stock for day trade, do we like a stock that is held by institutions with high percentage or low percentage? Generally the theory is the higher % held by institutions the more volume will be transacted as Institutions ENTER or EXIT positions of the stock. Thus a institutions transactions will trend for a few days as the institution positions itself, as large positions take days to be filled to the required investment size of the institutions. On 4/23/2022 at 11:52 AM, GoldWTcal said: Would a stock with more than 50% held by institutions good for day trading or not? The higher the better for possible trending On 4/23/2022 at 11:52 AM, GoldWTcal said: Are there certain screening criteria - say normally above a certain percentage ( held by institutions ) , then the stock is not good for day trading? This is subjective and different traders have different % amt. I like 75%, but have no way to say that this is "right". 1 Share this post Link to post Share on other sites
GoldWTcal 1 Posted April 25, 2022 20 hours ago, Alastair said: Generally the theory is the higher % held by institutions the more volume will be transacted as Institutions ENTER or EXIT positions of the stock. Thus a institutions transactions will trend for a few days as the institution positions itself, as large positions take days to be filled to the required investment size of the institutions. The higher the better for possible trending This is subjective and different traders have different % amt. I like 75%, but have no way to say that this is "right". Thanks for your reply. appreciated. In a day trading book I read the following: " most of the wall street investment banks, mutual funds, prop firms, and hedge funds base their trading on sophisticated computer algorithms and high frequency trading ( HFT )" and for retail traders " it is extremely important to stay away from stocks that are being heavily traded by institutional traders". will appreciate if you and other traders could shed some light on this topic. thanks Share this post Link to post Share on other sites
