|A Collection of Informative and Interesting Articles|
|HOME||LOGIN||SUBMIT ARTICLES||TOP AUTHORS||WANT AN ACCOUNT?|
Penny Stock VolumeBY: Kelly Ireland | Category: Finance | Submitted: 2010-03-07 11:06:55
Article Summary: "Why is 'volume' so important for a penny stock? This article includes everything you need to know about how and why the stock's volume is so important for penny stocks..."
Volume is the number of shares that are traded over a given period. There is usually a 10 day average volume given for penny stocks. A significant spike or dip in the volume is regarded as an important indicator.
Be careful when searching for a penny stock by volume.
The actual number of shares being traded doesn't always tell the whole story. Let me explain, if a penny stock has a volume of 1,000,000 in a single day, at a quick glance it would seem like penny stock worth researching (because of the high volume). Not only the number of shares being traded is important, but also how much money is changing hands. If the price of that penny stock is $0.50 (1,000,000 volume) then there is about $500,000 changing hands. That is a lot of money if you ask me. I would continue researching that stock.
Penny stock picks: www.listofhotpennystocks.com
However, if that stock price is $0.0003 per share with a volume of 1,000,000 then there is only $300 changing hands in an entire day of trading. This is not the kind of penny stock you want to invest in. This stock is most likely in the very early stages of development. The company could be years away from generating a dollar of revenue.
The number of shares being traded and the amount of money changing hands are both important but there is one more aspect of volume worth looking at: the number of trades. A penny stock could 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 amount of trades being made it is difficult to predict the value of the stock. The price per share (PPS) could increase or decrease by 25% for no reason (another reason penny stocks are risky).
Penny Stock information: www.listofhotpennystocks.com
About Author / Additional Info:
I'm Kelly Ireland and I manage a great website designed to share information about penny stocks to the world. Penny Stocks are a great way to get started in the stock market because you don't have to invest thousands of dollars. My website also includes Hot Penny Stocks and a List of Penny Stocks.
Comments on this article: (0 comments so far)
• Choosing the Perfect Idea For Your Budget Wedding
• FAQs on Buying Used Cars
• Mysteries of the Oil in Canvas Russian Wolfhound
• He Discovered That Mostly, Seniors Are Very Much Worried
Latest Articles in "Finance" category:
• DEMYSTIFYING THE ONTOLOGY OF TAXATION RULINGS IN THE GAMBIA: PART III
• DEMYSTIFYING THE ONTOLOGY OF TAXATION RULINGS IN THE GAMBIA
• Why is Wheeler Insurance Renewal Important and Beneficial?
• Turn Your Skills Into MONEY
• I'm Giving You a Raise
• Public Sector: A Pride to Say Or a Price to Pay....
• Internet as a Source of Income
Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms.
Copyright © 2010 saching.com - Do not copy articles from this website.
|| Home | Disclaimer | Xhtml ||