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Hello Crazy Gang,
The reason, by and large, that shares fall in value is that nobody wants to buy 'em. Or at least fewer people want to buy than sell.
So the best way to see if a share is about to fall in price is to count the number of sales in a day and compare that with the number of purchases? Well, it seems logical.
But Crazyland is never rich in logic, so it often happens that a share which rises in value on the day is actually sold more than it is bought.
This can be because when a share rises a load of people jump in to take advantage of the day's profit. So there are more sales than purchases.
However, in my humble experience - and it may not be yours, or anyone else's for that matter - if a share shows more sellers on the day than winners, it is more likely to fall back or at least to stop moving up.
So one of my personal strategies is to sell a share which has moved up dramatically on the day, but, before the close, starts to show many more sales than buys. That way I lock in some profit.
Rock on!
To find out more about Malcolm CLICK HERE
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