Why Volume Matters More Than Price

When I started trading, I used to only look at one thing: price. Was it up or down? Green or red?

But after a few months of wins, losses, and hours of chart watching, I realized something more powerful than price alone:

Volume tells the real story.

What Is Volume?

Volume = the number of shares traded in a given time period.

If price is the “what,” volume is the “how many people care.”

Here’s Why It Matters:

1. High Volume Confirms Breakouts

   1. A stock can break resistance at $10, but without volume, it’s probably a fake out.

   2. If the breakout is paired with a volume spike, it means real buyers are stepping in.

2. Volume Reveals Strength Behind a Move

   1. A $1 move on low volume? Could be noise.

   2. A $1 move on high volume? That’s conviction.

3. Low Volume = Easy Manipulation

   1. I’ve seen low-float stocks spike 50% in minutes… and dump just as fast.

   2. Without volume, the price is often just a mirage.

How I Use Volume Daily

• Before the Market Opens:

  • I scan for stocks with unusual pre-market volume

  • If a stock usually trades 500K/day and it’s already at 2M by 9:20 AM, something’s up

• During a Trade:

  • I use volume to confirm entries and exits

  • No volume on the breakout? I sit out

  • Sudden surge in sell volume? I trim or bail

A Lesson I Learned the Hard Way

I once bought into a breakout on a biotech ticker — the chart looked clean, and price pushed above resistance.

But I ignored the fact that volume was flat.

Minutes later, the stock collapsed. No real buyers were there. Just me and other hopefuls… getting dumped on.

That loss taught me: volume is the vote that price alone doesn’t show.

Final Takeaway

Price gets all the attention. But volume is the context behind the move.

If price is the headline, volume is the fine print — and real traders always read the fine print.