Can Determining a Stock’s Volume Affect Profit?


– So in this video, we’re gonna
talk about trading volume.
Why it’s so important and
why you must be aware of it
before you risk your hard earned money.
(vibrant music)
What’s up, Tim Sykes Millionaire
Mentor and Trader here.
Talking about volume.
But before I get into that,
just leave a comment below.
Have you read the new
book by my student, Jamil,
called; The Complete Penny Stock Course.
I’m gonna post a link
just below this video too.
Because volume is a very
big part of this book
and this book is crucial
in your education.
So tell my honestly, it’s
okay if the answer is no.
But just say yes or no.
Have you read; The Complete
Penny Stock Course.
It’s on Amazon, it’s on
Kindle, it’s on Google Play.
It is must read material.
It has all of my lessons
combined in one book.
So if you kinda want like a quick resource
to learn all of my rules, read the book.
So if the answer is yes,
fantastic, I’m sure you loved it.
I’m not even in doubt,
that’s how good I know it is.
And if you haven’t, please
click the link just below.
And be honest with your comments.
Part of this is you being
honest with yourself
and being honest with me.
That’s how I can be the
best teacher to you.
So don’t lie if you haven’t read the book,
but you’re like “No,
I’m gonna type in yes.”
don’t do that.
Get in the habit of telling me the truth.
Because I’m here to help you.
That’s what this is all about.
So let’s talk about volume.
Volume is how many shares the
stock has traded in a day,
in a month, in a year.
There’s many different time frames.
Or in a second, sometimes
a stock trades 100 shares
in a second, sometimes it trades
10,000 shares in a second.
Sometimes it trades 10,000 in a day.
It’s all about how many
shares are being traded
back and forth between buyers and seller.
So if a stock has traded
a million shares in a day,
there’s been 500,000 shares bought,
500,000 shares that have been sold.
Simplistically, I know that
there’s more to it than that
but that is what volume is.
Why does it matter, because you need
the buyers and the sellers.
You need that kind of liquidity.
I’m gonna bring up
liquidity and volatility,
I’m gonna give you a few terms.
Which is another reason why
you should read that book;
The Complete Penny Stock Course.
Those terms are explained.
Again click the link just below
this video to read that book.
But you need volume.
You, yourself,
if you’re gonna trade these Penny Stocks.
You yourself are gonna
be some volume, you know.
If you have a $5,000 position
and it’s a $3 stock,
you know $2 stock let’s say.
Then you have like 2,000 2,500 shares.
You have to understand
what does volume mean.
And I know that’s a terrible example.
I’m making this very simplistic.
But for me, I don’t wanna be
more than one or two percent
of a stocks daily volume.
So if the stock is trading, let’s say,
a million shares in a day.
I don’t personally wanna trade more
than 10 or 20 thousand shares.
Because if you’re a bigger
percentage of the volume,
then guess what, it gets very difficult
to execute your buys or sells.
What if you’re 50% of the stocks volume.
What if you’re trying
to trade 500,000 shares
and the stock only trades
a million shares in a day.
It’s gonna be very tough for
you to get in or get out.
But if you’re only one or two percent
of the days total volume, it very easy
for you to get in, get out.
Hopefully you have a profit.
Or if you’re wrong and you
have to cut losses quickly.
You never want to be too big
a percentage of the volume.
You definitely don’t wanna
be all of the volume.
I can’t tell you how many
Penny Stocks there are,
where they have some great product.
Some great news and people are like,
“Wow the product is amazing.
“The news is amazing, I just need to buy.”
And no one else cares.
And your just like, “Have I
spotted the next Microsoft
“myself and no one else knows.
“This is a great deal.”
for me, I want to piggy back moves
that are already happening.
I want to trade big percent gainers.
Stocks that volatile.
Companies that you know
the value of their stock
is going up 20, 30, 40,
50 percent in a day.
Ideally, with big volume.
Volume shows interest.
So if a normal Penny Stock
trades 10,000 shares in a day
and it trades 10 million shares in a day.
There’s a lot of interest this day,
compared to a normal day.
That’s good okay.
I want all of Wall Street or
not necessarily Wall Street,
’cause Wall Street usually
ignores Penny Stocks.
But I want all of the day trading hoard,
who trades low priced
stocks to be interested
in the stock that I’m in because why.
Well because the day trading hoard
and momentum traders are very fickle.
And that means that the
stock is gonna go up or down.
If it’s rising and all the traders
are piggy backing it, fantastic.
but if the news turns
or if the volume dips
or whatever the reason.
If it starts fading, it
can crash very quickly too.
That’s very good for me as either a buyer,
trying to ride it up and
make money on the way up.
Or as a short seller, trying
to make money on the way down.
You just want to take a piece of the move.
I would not try to buy at the bottom
and sell at the exact top
or short of the exact top
and buy at the exact bottom.
Just like I wouldn’t be, wanting to be
big part of the volume.
I don’t care how much money
could potentially make.
The greater percentage you
are of a stocks daily volume,
the greater the risk.
If you are 20, 30, 40
percent of the stocks volume,
you might be right this time,
but if you keep doing
that again and again,
one time you’re gonna get stuck
and you’re playing with fire.
And one time you’re gonna get burnt.
And that frankly, is
how a lot of people lose
all their money.
So I wanna teach you the safe way.
If you’re less than one or two percent
of the stocks total volume in day,
your fine, you can get
in, you can get out.
You can cut losses very quickly.
You can take profits.
That is the sweet spot.
This was a very abbreviated
take on what volume is.
Again click the link just below
if you wanna read The
Complete Penny Stock Course,
that goes into more details.
Hi Tim Sykes, Millionaire
Mentor and Trader.
Thank you for watching my videos.
I hope that they help you.
I wanna share everything that
I’ve learned over the years.
You can check out more
videos right over there.
And also click Subscribe,
so that you can watch all of these videos,
get that knowledge and become
my next millionaire student.

Author Since: Mar 11, 2019

  1. Tim- what do you look for in volume when setting up your scanner prior to research? For going long & short…?

  2. Sykes you can give the example of Spartan Securities Group and the last BPTH run. One rogue trader was short and holding > 50% of the float and squeezed himself losing $16,000,000.

  3. Have the book, finishing up Pennystocking Framework Part Deux. Once I finish that tomorrow I’ll be reading it 👍🏼

  4. I'm 17% through the Complete Penny Stock Course… and I've had the book for fucking 7 months lmao.

    The notes I've taken though on that 17% if pretty great though so far, and I've retaught myself to study correctly and format everything well while doing it for easy revising later on.

    I'll finish it one day! I promise lol!

  5. I use volume to deternmate how much volitilty the pair has and after I check the fundementals or news to see what caused that high volume and I go long after the sellers had low volume(for a indication that the sellers dont have that much strength to go alot further) for example, so is this a correct way to read volume im curios Tim?

  6. yes i have read the book 2 times reading it for the 3rd time right now the book is amazing with so much information

  7. I'm reading it now. I just started and just found you and your information and tactics etc. Super pumped to learn and then eventually start trading.

  8. I like stocks that are top gainers , that have a 500,000 volume average , that are closing in on 1 million volume , and moving upward toward a breakout . Feel like that’s watching the honey before it overflows the pot . And I’m sitting there waiting to start drinking

  9. yes i have read it but after trading for awhile now I should read it again. Im sure a lot more will make sense and sink in.

  10. Yes! My book is full of notes and I refer to it constantly as I continue to learn. I can't imagine how I would've gotten started without it!

  11. Big fan from India sir…..please make video on Indian Market because it's very different if you trade in penny stocks

  12. This video answered some of my biggest questions, thanks Tim Sykes. I recently started reading the Penny Stock book you mentioned.

  13. I read the book three times through and picked up on things I missed the first two times. Greatly improved my trading day.

  14. ZenTrader1991 here, reading the book as a text book following al the instructions to the T. Great material.

  15. Yes! I have read it!! Twice! Great book! I love the risk/reward chapter and all the homework/practice lessons contained in it. Thanks for addressing this. I mentioned you making a video on this along with supply and demand and how the market moves. Thank you thank you!

  16. I have not read that book yet, I want to finish your hedge fund book first, love how you made money selling old tennis balls, I use to do the same thing with golf balls

  17. Hey Tim!! You inspired me to start trading and im addicted!!!! Hence why im up now planning for pre market lol ill have to get the book

  18. Scamming loser and a coward. As soon as I even hinted he is a scammer on Instagram I got an instant block. Which only proves I'm right. Coward and a fraud piece of nobody. Don't waste your hard earned money on this scamming loser and his so called "teachings". Those who can't, teach…

  19. Just got the book in the mail! Super stoked. My trading account is less than $100 due to budget but it’s been an awesome learning tool. So far I’m up 7%!

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