Pay attention to volume a tell tale signal to profits.....

Any skilled Spades or Domino player will tell you that even though you cant see your opponents hands watching the table is important and key to how you dictate what you play in your hand. The stock market is very similar in the sense that VOLUME is key to price action and understanding what stage a stock is in its cycle ....(Accumulation, Consolidation, Distribution and Declination) By looking at amc you can see when the price hit high the volume went off the roof. When this is occuring this is a tell tale sign to take profits. You can sell off 50% of your position and ride the rest to your comfort level.....But volume is also a good indication of its a good stock as well. I say if the avg vol is 500k or higher that is a strong indication that the security will be around for a while. The big thing to gaurd against is stocks that are very cheap usually under two dollars for a certain period of time get in trouble and risk being delisted if they dont have a price increase. Volume helps you avoid this scenario.....(remember the dot com bubble) > >>>Key way to measure your risk before taking reward is volume.....


#volumematters #vol #