Working Money: Volume Speaks Volumes by Dennis D. Peterson
Sometimes the market roars and at other times itís quiet. Paying attention to these volume fluctuations can make a difference in your pocketbook.
Suppose someone offered you something you wanted, for less than it cost two weeks ago. Would you turn it down? What if everyone in your neighborhood had heard about it and they all wanted it too? Would they turn it down?
These same dynamics are at play in the stock market ó and volume is a tool that can help you decipher them. If a stock is perceived to be a bargain, then the whole neighborhood will jump in. If itís perceived to be too expensive, then not many will buy it.