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how to make money in stocks and how to get rich_119 Navigation: Main page » how to make money in stocks and how to get rich Author: how to make money in stocks and how to get rich Big daily and weekly volume provides another extraordinarily valuable tip-off to a trained chart reader looking for potentially large winners. Fannie Mae in May 1988, Software Toolworks in September 1989, arid Nordstrom arexamples of outstanding stocks that flashed such a key indication immediately before tremendous price increases. Huge volume weeks with price advancing, followed by extreme volume dry ups in other weeks, illustrates a picture of maximum contrast in volume levels. This is very constructive. Using a daily chart service conjunction with weekly basis graphs can frequently let you see unusual volume activity that happened on only one particular day. Analysis of volume, or the number of shares of stock being traded, is a subject worth careful study. It can certainly help you recognize if a stock is under acumulation or distribution. Once you acquire thiskil, you won't have to rely as much on the personal opinions of analysts and experts. Big volume at major points is indispensable. Let me offer one last bit of judicious guidance. If you are new to the stock market or the strategies outlined in this book, or more impor tantly,you are reading this book for the first time near the beginning or middle of a bear market, do not expect the presumed buy patterns to work. Most will be defective. The paterns can be to wide and lose, with third- fourthstage bases; wedging or lose, slopy handles; handles in the lower half of the base structure; narow "Vs" moving straight up from bottom of a base into new highs, without any handle area forming. The patterns can show laggard stocks with puny relative strength lines and price structures with to much adverse volume activity. It isn't that bases, breakouts, or the method isn't working any more, it's that the time and the stocks are simply wrong. The price and volume patterns are phony, faulty, and unsound. The general market isn't right. It is selling time. Even a skunk isn't going to make a cent. Be patient, keep doing your studying, and be 100% prepared. |
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