I’m going to show you how flying a kite will make you a fortune.
First, go out and buy yourself a kite and a roll of kite string. You may as well get a nice kite, too.
Spend a few bucks, because the money you’ll make from this exercise will pay for the kite on your next trade. Maybe you’ll be able to buy a kite company someday if you follow this lesson.
Okay, now go out on a nice windy day and send your kite up as high as you can.
Notice how the pull on your hands increases as the wind stiffens. The stronger the breeze the higher kite will rise.
Notice how when the breeze wanes, the kite wobbles first, then falls.
Take notes on what you see and feel when you are flying your kite.
Now, here’s the lesson. In stock trading, volume is like the wind. Increasing volume will push a stock higher and higher. If the volume wanes, be prepared for the stock to wobble and fall.
If a stock moves up in price without good volume, it’s a “sucker play.”
Without healthy volume, the stock will likely fall soon.
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