Trading Volume Explained: Stef’s Masterclass
If there’s one thing that I am absolutely certain on in markets, it’s that volume is a crucial metric in stock trading. You simply can’t trade (or even invest) if you don’t understand the basics of volume. That’s why I am going to explain why in my latest 42-minute video, which is embedded from Youtube below.
3 Key Educational Lessons on Volume
- Know Your Volume Before You Trade: Far too many investors and traders buy assets not fully understanding the volume. If there is too little volume and they enter too quickly, they may be trapped forever. This is not good. One must understand the liquidity and that is essential to placing trades, entering and exiting.
- Volume as an Indicator: In the video I explore all of the indicators that can be used with volume, including chart types and real trading examples. From Volume Profiles to Volume Footprints and VWAP, I show the basics of these tools.
- Volume as Research Tool: Volume becomes more powerful when paired with price as it can quickly demonstrate where levels of support and resistance are, while also showing where active buyers and sellers may be waiting.