Greetings to the Forum - although this is my very first contribution, I have learnt a considerable amount from just reading as many of the posts as I can (before the boss catches me not working - lol.) Been 'Trading' (more like "donating") almost a year now & am still a knowledge "sponge" - at the risk of revealing my ineptitude I have been trying to understand "Volumes" without much success & am hoping the Forum can enlighten me? Simply, how does one determine if traded volumes are 'Positive' or 'negative'? It's probably staring me in the face - but hey no stupid questions - only stupid answers. Eg. in point - PAN-AF. yesterday's no. 1 volume mover!? An AltX at 73c being no.1 in Volume in only 23 deals!!?? What is up with this? How do I determine if there's a lot of 'dumping' going on or a lot of buying? Again at revealing my ineptitude, I have had a small bunch of PAN since mid March & am starting to get that "tingling" in the nether regions - but can't decide if it's a good tingling or a bad one. If I dump it now I can still walk away in the green.... JUST. HELP??!! Regards. MikeV
Mr V. Your exit is more important than your entry. You know what you could afford buying. Your question that has to be answered, what was your sell price when you bought? If you have achieved this and maybe been luck for a few extra cents, SELL at least enough to take your capital out. the rest is play money. you keep you profit or loose. Your capital is safe. Hope this helps
As for Volume question, I have sought ansers and found none, maybe yet. Best i figure is volume is volume end of story. big volumes and share is heading south, something wrong or news expected so sellers are getting out at a profit. volumes big on rise, news expected and buyers getting in for profit. Thats about what I can figure. Any other traders have better insight to volumes?
Yes - great question and one that I have a problem understanding. For every buyer, there's a seller and of course, the other way round. Please can one of the experienced traders on the site can help with this one.
Hi, I believe rising price with increased volume - bullish. Rising price with decreased volume - bearish. Declining price with increased volume - bearish. Declining price with decreased volume - bullish. To see which direction smart money is going from a trend point of view use On balance volume indicator (OBV).
Hi Magician, not really true. for every seller there can be a number of buyers to make up the volume being sold and there can therefoe also be one buyer buying the volume of many sellers. Hence the use of the OBV indicator I mentioned below.
Hi All. WOW! thanks - Ireally didn't expect quite such a response. In any case my 'volume' concerns re: PAN(info out on Summit tv last night & now SENS headline) Metorex dumped 53.4% of its holding in PAN, to be taken up by Coronation, Allan Gray, Shanduka Gold, JP Morgan & Investec. Some big names in there. On the edge of my seat for opening this morning!