Penny Stock, Penny Stocks, Hot Penny Stock, and Hot Penny Stocks Tips and Recommendations:
Posted on 04 July 2012. Tags: top volume stocks
You should always pay attention to top volume stocks when making investment decisions. Often, the public gets excited by news of a positive stock market fluctuation or even the rise in value of a single stock. However, these events are not always meaningful. Sometimes the market rises on a low volume of trading. This means that most traders avoided getting involved and a relatively small number of shares were traded that day.
Top volume stocks are your best option when it comes to trading. A stock that increases in value, even significantly, due to low volume is not trustworthy. When stocks are trade in large quantities and you see positive movement in their prices, then you know that there is a consensus on the market that this stock has valid potential. In these situations, the market is usually right and it pays to follow the leader.
Stocks that trade in high volumes often represent the same sector of the market. You can use these statistics in order to determine which sectors of the market are most active. Generally, it is in these sectors that you can focus your efforts at finding the next break out stock.
There is no guarantee that stocks trading in high volumes are going to make great returns. Sometimes, high volume trading occurs when the stock is giving back some of its advances as well. However, you do not need stocks to rise in value in order to make money. By studying price-performance patterns, you can time your purchases and sales to coincide with these fluctuations in value. You can count on top volume stocks in these situations because there will always be someone available to buy when you want to sell.
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