How Volume Affects & Plays a Role in Stock Prices

★ SUMMARY ★
Hey this is Sasha Evdakov and welcome to another episode of let’s talk stocks, episode number 66. I decided to number some of these episodes now so we can easily reference them in the future and now that we have a podcast, it’s just a good way to reference them rather than referencing the title so just makes things a little bit easier in the future.

Even though we’ve done probably a couple hundred of these episodes in the past, you can go back and look at them. But the more important ones, the longer ones, we decided to go ahead and number though, so people can easily reference them.

In this week’s episode, episode 66 we’re going to discuss how volume affects and plays a role in stock prices or how it moves that stock market or the specific stock that you are watching.

This kind of references episode 65 “the cause and effect ripples in the stock market”, so if you haven’t watched that episode posted on December 17th, 2015, make sure you go back and actually watch that because they kind of will work together.

In this episode that’s what we’re going to hone in and focus on, because I’ve had a few questions over the holidays that asked me about volume. Even though we’ve done this subject before in detail, I’m going to go over it again in detail.

We won’t go in as much detail as we do in the courses of course, but we will go in detail about how it really plays a role and why it plays a role, so that’s what I’m going to cover. So at least you get an idea of why it’s important.

Hopefully over the last few weeks you had a great time over the holidays, maybe a little bit of a mental shift or break, maybe you got a chance to spend some time with the family. For me personally, I find that the holidays are always really busy.

It used to be, when I was a lot younger, I could just relax and enjoy the holidays much more but I guess as you age and get older, there’s a lot more things that you actually have to do for the holidays and I find it sometimes overwhelming but nevertheless once they are over that last week right before new year, I find it’s a lot more peaceful and more relaxing.

Hopefully you got some time to think, for us we got a chance to go to Canada, and typically we like to go up north, and see the families up there, and I spent some time in the winter areas doing some winter activities and festivities, when it’s colder and when it’s warmer we go back down to Florida and I spent some time over there. So in either case that was kind of what we did over the summer months, here coming up on vacation.

I guess around easter time we’ll be going to Florida, but nevertheless hopefully wherever you are, whether you’re in the United States, whether your overseas, you just had a nice holiday break from the markets, and hopefully when you came back the cause and effect, what’s going on right now, what’s happening didn’t shock you too much, hopefully that you were prepared for it.

With that being said and that in mind, let’s dig deeper into this lesson because it’s an important lesson to really understand how things move in the markets and how things behave.

Trading during holidays
To do some insight for you regarding the holidays, typically what I do when I’m on holiday, and it just depends on my focus and how much focus I can have on the stocks, typically I’m out all of my positions, meaning I don’t hold my positions if I cannot watch them.

Posted at: http://tradersfly.com/2016/01/ep-66-volume-affects-plays-role-stock-prices/

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32 COMMENTS

  12. when you talk about the support line becoming more fragile the more times it's hit by price, do you only mean when price PUNCHES THROGH IT briefly (e.g. 'makes a hole in the wood'). Whereas, if price only bounces, I read that it actually validates (strengthens) the support line further – correct? cheers

  13. Hi sasha…i just want to understand why there is green and red bar volume…if it's green, is it because there are basically more people waiting for the que to buy and there are lesser people who are willing to sell on that particular day? Thus the price goes up basically the demands exceed the supplies, is it? And for the red volume bar is vice versa..?

  22. 5 minutes and 28 seconds into the video and he hasn't even started yet. Sasha, why are you babbling about personal stuff unrelated to the video? It's a waste of our time. Please edit the videos to get rid of this mindless babbling.

  25. I just wanna say thank you for your videos. I leaned a lot from it though I'm based in the Philippines and the stocks in you used as an example can't be found in our exchange. Your presentation skills is superb.

  26. Hello Sasha, Thank you for posting this great video. May I know if I had bought 10 contracts to open, is it possible i can't sell to close due to low trading volume even though they are in the money? Thanks a lot

  32. Hi Sasha, im new to this and have a huge interest in learning day trading i have been buying your curses and they are awesome, i have learned a lot, next course will be the technical analysis, i already bought the Understanding the stock market and how it works & Stock Trading Foundation, and so far i have learned a lot, can i ask you what trading platform you use?

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