Friday, October 21, 2005

Volume

You know, I was thinking how these books on trading tell you how to look for big volume as a signal to buy or sell. I agree with them but I do not think it is that easy. Look, these institutions are smart. They don't want to put up a big flag and say, "hey look, we are buying (or selling)." No, they want to be quiet. So, don't think that volume is a big telltale sign. You have to focus on price and the close on the day.

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