Smurf1976 said:For someone to be buying there has to be a seller and vice versa. So if 200,000 shares were traded on a given day then 200,000 were sold and 200,000 were bought.
To put that another way, 200,000 shares have changed ownership. There must be two sides, both buy and sell, for every transaction. Just like for you to buy a loaf of bread, someone has to sell it. Two sides to the transaction but it's only one loaf of bread and would count as 1 on a volume chart.
It is possible that the 200,000 shares were sold by 50 different shareholders and 1 person bought the lot etc. Such an extreme situation with only one person buying on a given day would be unlikely to happen with very actively traded blue chip stocks such as BHP or TLS (Telstra) but will happen from time to time with less active stocks such a small mineral explorers where few shares change hands each day.
No such thing as dumb questions in my opinion. Always better to ask, that's what ASF is for...![]()
surelle said:thanks for that ...I'm still not 100%, but I suppose time and experience will heal my confusion
why listen to baglimit...experience???
What you really need to do in my opinion is develop an actual trading plan which you know will be profitable over time even if individual trades make a loss. And that plan needs to be tested both on historical data and also in real time with no (or little) actual money being traded. Once you've got the plan sorted out, then trade will real $.surelle said:thanks son of.. will do
I'm only new to this and getting a little frustrated at the moment as everytime i buy something it heads south instead of north...
not having much luck at the moment - need a kick start somewhere
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Nick explains it is important to assess large volume with ensuing price action.Look for area's of large volume and note what impact the volume has on the prices. Is there high volume with the close being near the high of the day? This means buyers. If its high volume with a low close, then it means sellers. Tight ranges with high volume is important, as well as many other facets, so reading volume correctly is very important.
Nick explains it is important to assess large volume with ensuing price action.
Its a great topic and widely miss understood.
Very low volume in context can also be very revealing.
Perhaps some chart examples would be beneficial.
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