[Nick1984]

I think you mean just stocks that experience high price volatility. This is a double edged sword. These stocks are either very small or micro cap stocks therefore they suffer from huge price fluctuations as much as 5-20% in a day however there is bugger all volume so not a great trading instrument.

Large cap stocks may only move 1-2% a day but they have enormous volume so you can day trade them easily. If you have some serious capital behind you then stocks are probabbly better than futures and other derivatives to trade.

Eg: If you are trading with a $500,000 position every day (remember I did say serious capital) you could buy up shares in BHP Billiton (ASX code BHP) at the current price of 38.82. That would give you 12,880 shares. If you take lets say a 2% price movement which isnt uncommon you can go $0.778 in either direction. On that number of shares your profit is $10,000 per trade. Not bad ey.

Price volatility is usefull in these low cap stocks only for longer term trades cause you simply don't have the volume required to effectively trade them on an intraday basis.