When looking for that next homerun stock that's shooting for the big numbers. Keep in mind that stock volume is just as important. Remember some simple keys about stocks and business in general will take you a long way into the stock game.
Keep in mind. It's a number game, it's all about supply and demand, it's dollar for dollar, and it's about getting the most out of your buck!
Just like anything the volume of the stock can tell you alot more great information on the stock then you would or could imagine. Just think, if a stock is trading more then 400K daily volume, that's pretty heavy and the stock is pretty solid. Compared to a stock that is trading at the 100K or less of daily volume. Well, this stock is going to have a bigger volume spike say if just one buyer puts in a trade for say over 1,000 shares. Well, if I am you or say if I am the owner of the company owning a lot of that stock knowin if I could make money by selling and repurchasing my own stock while making a few and quick bucks! I will probably go for it as well, meaning I could sell or buy those 1,000 or more shares that I have of that stock to make the volume go up or down...when in return will effect a stock that has daily volume of the low 100K daily trading volume. Are you getting the picture now. Now, we are not saying stay completely away from these stocks, just take a very very good look!
Also, look for the stocks that are trading in the high volume to have a what is called a volume spike. If you can get one of those waves then you could be setting sort of pretty...just remeber whatever goes up must come down...and you if your surfing just like the net stocks you have to catch that wave just right and hit that wave while it's breaking or other wise your going to wipe out! That means get in fast and get out fast while...take your gains and run! Then hope to check the next one that's all we have for you today!
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Stocks Online Blog
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