Let's talk about one of the most crucial yet often overlooked aspects of successful trading: VOLUME.
Why is volume so important? Here's what you need to know:
- Volume = Liquidity and Fuel for the moves that take place on the charts
- Higher volume means easier entry and exit
- Less slippage on your trades
- Better price execution
- The Magic Number: 1M+
- Always look for stocks with at least 1 million average daily volume
- This isn't just a random number - it's your safety net
- Lower volume = higher risk of getting stuck in positions
- Pro Tip: π Before entering any trade, check the average daily volume. This simple step can save you from costly mistakes and improve your trading success rate.
Remember: The best setups in the world mean nothing if you can't execute your trades efficiently.
Drop a π‘ below if this was helpful!