No, we’re not talking about the volume of your speakers. We’re talking about the volume of trades.
Volume, or the amount of a stock traded each day, is a key metric many investors use to help them make buying and selling decisions. When a stock is in demand, its price tends to go up, as there are more people wanting to buy than sell. Conversely, when a stock is out of favour by investors, and more are wanting to sell than buy, the price tends to be pushed down.
Volume helps give you an indication of the favour of the stock – if it’s in demand or not. This episode, we dissect volume, and how you can use it to benefit your investing decisions.