• Australian (ASX) Stock Market Forum

Trading stocks with the highest volume

Discussion in 'Trading Strategies/Systems' started by hotgirl77, Nov 1, 2011.

  1. hotgirl77

    hotgirl77

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    I have been trading on stocks from the top volume list of 20 asx stocks that trade the most during a day...I normally buy them at 4 in the evening at maket close and sell them in the morning the next day when they open up with a higher price.

    I have been doing these for 6 months now and mostly it is successful but somedays the stocks that are trading well just fall flat the next day and I lose a lot of money...

    Has anyone ever traded with this momentum gap?was wondering if anyone has traded with this strategy of stock having momentum towards the end of the day and opening with a gain the next morning?
     
  2. tech/a

    tech/a No Ordinary Duck

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    High volume comes both with supply and demand.

    You need to be able to determine if the high volume is one or the other.
    If you can't your going to get on the wrong side of it more often than not.

    There in lies your dilemma
    And yes it can be done pretty accurately.
     
  3. redcorvetteguy

    redcorvetteguy

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    Hi hotgirl and tech/a,

    hotgirl, hows your volume trading going?

    tech/a, you say supply and demand can be worked out accurately to work out which way the volume will drive the share price. any hints?

    Happy trading :)
     
  4. tech/a

    tech/a No Ordinary Duck

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    I believe you can with a fair degree of accuracy---enough to anticipate a move.

    ill be bringing it to the table in the Learning T/A section.
    Will be a little while before it is discussed but would prefer to do it there.
    If thats OK.
     
  5. redcorvetteguy

    redcorvetteguy

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    Thanks tech/a, i will keep my eyes open in the 'learning T/A section'
     
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