- 1). Access your current stock account information through an online account. If you do not currently trade through an online trading service, contact your broker to get an updated list of your current holdings.
Use the tools of your online account to see how many shares of stock you own in each company and what their current prices are. Compare this to information regarding what you paid for the shares originally. - 2). Pull up information on stocks that you are interested in buying. Investors should always have a list available of stocks that they have been paying attention to as possible stocks to invest in. During high-volume trading days and when conditions are right, it is important to have such a list ready so that you are ready to make an actual trade.
- 3). Note what the average volume of a stock is and compare that to current conditions to see if it is trading on a high-volume day for that stock. Volume increases in a stock suggest a trend is developing as more investors are showing interest in a stock or market sector.
- 4). Make sure that when you are trading during high-volume days that you do not buy the stock at its highest price peak. During periods of high-trading volume, the stock is being traded by more people than normal. This can cause the price to go up as supply and demand come in to play and drive the price up since high volume signifies a positive trend.
- 5). Pay attention to stock prices throughout the day--after the initial spike in stock price due to high-volume trading, the stock should settle back to a more normal price. It is during that time that you should make your purchase.
- 6). Continue to monitor the market during high-volume days to see which stocks and sectors are performing better than usual. Use this information to identify overall trends. For example, if retail stocks have high volume on November 15th, there is a positive trend developing that suggests the retail market will do well as the holiday season approaches.
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