Stock Market Today

(Hi all,

How does the volume of a certain traded stock, influence its trading?
What does it mean when the daily volume is high? And when its low?

What does the traded volume tell me as a lay trader?

Thanks!)

Answer:;

How does the volume of certain traded stock influence its trading? and What does it mean when daily volume is high and low?
Volume influences the price fluctuations through supply and demand. Where there is high volume follows alot of trade transactions. Where there is low volume there are very little transactions.

What does the traded volume tell me as a day trader?
Traded volume is simply an indicator of how well a stock is going. As a day trader you use volume to pin point where the money is flowing (where the action is), where there is more volume there is the higher posibility to make faster transactions. You would never attempt to take a position to trade only based on the fact that there are alot of people willing to trade. The share market is very cut throat unless you have a set strategy from the time you enter the market to the time you get out, you will find alot of your money will disappear into other peoples pockets.