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      06-05-2020, 05:09 AM   #1167
Rmtt
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Drives: 2011 BMW 128i, 2008 LS3 C6
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Also let's talk volume for those that hear it...but not quite sure baout it.

A stock can go from $2 to $20.......but volume determines how long it takes to get there. It's affected by Market Cap, Float, etc. Below is an example.

When you see a stock with low float which means they aren't that many public shares available, if there is a catalyst....the volume of people trying to get in goes up dramatically and those shares are worth far more than if a company has a ton of shares out there to buy.

Dilution is an enemy of the float. When it's time to sell...you want people clamoring to get what you own.

You could have a stock worth $100....but if no one is buying you just have a stock worth $100.

That is where you get into Level 2 Charts. I highly recommend looking at those and learning how they work. They let you know what the bid/ask is going for.

In my example below..you will see bid on the left and ask on the right. This is Xspa. This is something you should always consult if buying something that is "hot" as it allows you to see resistance, volume, and what the "spread" is. Volume right now is light. Yesterday it was over 100 million. It will ramp up again like crazy.

Volume is how you set up scanners to alert you that something is going on.
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