Penny Stock Shares
Volume is the number of shares that are traded over a given period. There's often a ten day average volume given for stocks. A significant spike or dip in the volume is regarded as a very important indicator.
Be careful when searching for a stock by volume.
The actual number of shares being traded doesn't always tell the whole story. May I explain, if a stock has a volume of 1,000,000 in a single day, at a fast glance it would look like stock worth researching ( due to the high volume ). Not just the number of shares being traded is significant, but also what quantity of money is changing hands. If the cost of that stock is $0.50 ( 1,000,000 volume ) then there is about $500,000 changing hands. That may be a lot of cash if you ask me. I would continue researching that stock.
However , if that share price is $0.0003 per share with a volume of 1,000,000 then there's only $300 changing hands in a whole day of trading. This is not the kind of stock you need to invest in. This stock is most likely in the very first stages of development. The company could be years away from creating a dollar of cash.
The number of shares being traded and the amount of cash changing hands are both important there is however one more facet of volume worth having a look at : the quantity of trades. A penny stock may have a price per share ( PPS ) of 0.05, volume : 1,000,000, money being traded : $50,000, but only have 15 trades being made all day. With a low quantity of trades being made it is tricky to make predictions about the price of the stock. The price per share ( PPS ) could decrease or increase by twenty five percent for no reason ( a different reason penny stocks are risky ).
Penny Stocks are a good way to get started in the stock market because you don't have to invest thousands of bucks. My website also includes Hot Penny Stocks and an inventory of Penny Stocks.
Be careful when searching for a stock by volume.
The actual number of shares being traded doesn't always tell the whole story. May I explain, if a stock has a volume of 1,000,000 in a single day, at a fast glance it would look like stock worth researching ( due to the high volume ). Not just the number of shares being traded is significant, but also what quantity of money is changing hands. If the cost of that stock is $0.50 ( 1,000,000 volume ) then there is about $500,000 changing hands. That may be a lot of cash if you ask me. I would continue researching that stock.
However , if that share price is $0.0003 per share with a volume of 1,000,000 then there's only $300 changing hands in a whole day of trading. This is not the kind of stock you need to invest in. This stock is most likely in the very first stages of development. The company could be years away from creating a dollar of cash.
The number of shares being traded and the amount of cash changing hands are both important there is however one more facet of volume worth having a look at : the quantity of trades. A penny stock may have a price per share ( PPS ) of 0.05, volume : 1,000,000, money being traded : $50,000, but only have 15 trades being made all day. With a low quantity of trades being made it is tricky to make predictions about the price of the stock. The price per share ( PPS ) could decrease or increase by twenty five percent for no reason ( a different reason penny stocks are risky ).
Penny Stocks are a good way to get started in the stock market because you don't have to invest thousands of bucks. My website also includes Hot Penny Stocks and an inventory of Penny Stocks.
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