Wednesday, October 18, 2017

How to Use Volume to Improve Your Trading

Most small investors I interact with are either looking for a multibagger stock that will generate quick profits, or trying to find that elusive technical indicator that can predict price movements with greater accuracy than anything known or available in the stock market.

A few experienced and knowledgeable analysts have even devised their own proprietary technical indicators, which enable them to charge higher fees from their clients.

At the end of the day, it is not the sophistication of your trading strategies or your incredible ability to take risks that will turn the tables in your favour. 

It is how well you have selected the companies you wish to trade in, and whether you can identify and capitalise on important turning points on a price chart.

One of the simplest and easiest to understand indicators that can be of immense help is the volume of trading in a stock or index. Yet, so many analysts who opine on price charts have very little understanding of how volume (or the lack of it) affects price movements.

In a recent article in, Cory Mitchell explains how understanding and analysing trading volumes can improve your trading. Read the article here.

(Wishing blog visitors, regular readers and newsletter subscribers a very happy and safe Diwali and a prosperous New Year.)

No comments: