The company I invested into ($1500) has yearly revenue of about 10 million dollars. However, when I bought my 1300 shares I didn't know what volume meant! So after the stock market closed I looked at the stock I bought. I looked at the volume. It was 1300! I put two and two together and realized I might have made a very poor investment! About 6 days ago it was trading for $1.80 and I bought it at $1.15 and right now it is $1.10.
Low volume does not mean poor investment. Just means its not on people radar. There are alot of things to take into consideration like how many shares or outstading or in the float. If there are very few shares then it will not take alot to move the stock up or down. A stock could go up or down 20% on as few as 100 shares traded depending on the size of the float. Also what does the chart look like? Has it been flat for 2 years or is there alot of movement?
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