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Online Share Trading

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value and volume

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Not applicable
hi, which 1 moves the share price? is it volume or the value. eg. 100buyers 20 sellers therefore price goes up.
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7 REPLIES 7
john_1
Super Contributor
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Rams
Super Contributor
Volume leads Price. Always. And without exception....
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john_1
Super Contributor
prove that.. because I can tell you that the lowest volume trading month is DEC and it also has the historic best performance of any month...Also when market is tanking, huge drops are caused because of the absence of volume...or huge moves on penny stocks that actually represent a single trade jumping the spread etc etc
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Not applicable
Doesn't the simple principle of supply and demand come in here, which means the higher the demand, the more shares are distributed which then means the price is higher. Thus, volume is the key driver.
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kokkie
Contributor
Price = Supply and Demand AND the Human factor (Perception of the situation). The latter the most important in my book.
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Ninja
Super Contributor
Price alone.....the jse is more volatile than DJI or FTSE with wild price moves with less volume, not more. Low volume allows easy swings in price from a single large single player. With massive volume even a huge player cannot move price very far.
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Rams
Super Contributor
Its like the chicken and egg.... I think the egg came first. Always and without exception!
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