Trading on Volume

Front Cover
McGraw Hill Professional, 2002 - Business & Economics - 304 pages
Volume can be the key to understanding what is relly happening in the stock market. Volume is a dynamic aspect of the market, reflective of supply and demand, and thus crowd behaviour. This work gives a complete explanation of volume and how it can be used to trade more effectively. It shows that volume behaviour and changes can provide important clues to price movement, in direct contrast to such established theories as random walk and efficient markets that state that price is essentially unpredictable. The book explains how volume discloses the amount and type of interest in a stock. By examining and understanding the dynamics of volume, the trader can pinpoint the rise, climax and fall of the activity of market participants (behavioural finance), which provides an extremely reliable indicator of price reversal in real time. Knowing this helps the trader get out near stock or market tops and buy near stock or market bottoms.

From inside the book

Contents

Volume Is the Cause Price Is the Effect
3
viii
9
Random Walk or Behavioral Finance?
17
Copyright

17 other sections not shown

Common terms and phrases

About the author (2002)

Donald L. Cassidy is a senior research analyst and manager of fund flows research for Lipper, Inc. A cum laude graduate of the Wharton School of Finance at the University of Pennsylvania, Cassidy is a popular speaker at investment seminars, appears frequently on radio investment programs, and is a guest finance lecturer at a number of universities. Frequently quoted in business publications including The Wall Street Journal, Barron's, Worth, and Kiplinger's, Cassidy also provides Lipper's weekly radio commentary on mutual funds. His previous books include 30 Strategies for High-Profit Investment Success, It's When You Sell that Counts, and Plugging Into Utilities.