Low Floats. 12:34pm 9/27/24 $CN Energy (CNEY.US)$$Taoping (T...

Arrayfunction : Would you mind explaining how to incorporate float volume when evaluating a stock? That's one topic I haven't come across in any formal learning material.

I know that it refers to the number of shares available for trading. I mostly haven't figured out if it can be used in the absence of confirmation bias with all the possible branches like.....

Low float -> low liquidity -> higher risk -> removes low-risk investors (obligated like fiduciaries or individual people) -> reduced demand increases volatility -> consumer base further limited -> company becomes undesirable preventing natural share value growth -> share price extremely sensitive to any trading -> outcome ultimately up to market makers vs short sellers -> technical and fundamental analysis become irrelevant -> swing trading is reduced to a game of roulette where you bet on either the market makers or short sellers.

Did I get the standard line of thought correct?

Stock_Drift OP Arrayfunction : Yes. You did. IMO.

Arrayfunction Stock_Drift OP : Thank you! I hadn't mentally spelled it out until writing my question. The way people behave around low float penny stocks suddenly makes a lot more sense!