Be Alert to Stocks with the Greatest % Change in Volume

Be Alert to Stocks with the Greatest % Change in Volume

All newspapers show the 15 most active stocks, usually consisting of securities like IBM, AT&T, or General Motors, which each normally trade more than a million shares a day. Investor's Business Daily, on the other hand, shows a table of the "Common Stocks with the Greatest % Rise in Volume." This spotlights companies that have the largest increase above their own last 50 days of average daily trading volume.

The list is valuable because the computer surveillance picks up the small- and medium-sized, innovative, entrepreneurial organizations that may have a 500% increase in trading volume but never reach a total volume figure large enough to make the more commonly followed "Most
Active" lists. These sophisticated screens may not appear in other publications. Pay close attention to the boldfaced stocks on the list.

Some newspapers list the stocks that are up most, percentagewise, in price. This list is almost universally worthless because it will show a $2 stock up /s of a point as stock up in price the greatest percent. They also show preferred stocks in the list. Low-priced stocks and preferred
issues are of little use to most informed investors. You can't get rich prospecting in the junk pile.

Eliminating the cheaper, less relevant, low-quality stocks, plus the preferred issues, and concentrating on a meaningful list of 25 of the more significant securities or higher is more useful. Stocks in this list that have options listed show a small "o" after the company's name
to assist option traders.

Most newspapers typically provide a small block, "How to Read the Daily Stock Tables." Be absolutely sure to read these instructions as you would directions to any new product you buy. You'll learn many helpful facts that will save you money.

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