The Spanish Stock Market traded 41.407 million euros in January, which represents 6,8% more than in the previous month and the best month since October, although 18,6% less than in January 2018. On the other hand, the number of negotiations stood in this period with 3,6 million, a 15% more than last month. These are data that demonstrate the great popularity of equity markets among investors. More if possible, when fixed income is currently at historical lows and with a profitability that barely exceeds the level of 0,75%.
Well, beyond these relevant data, the volume of contracts can be a signal about the strategy that small and medium investors should use. Mainly to carry out purchase or sale operations. Because in effect, the volume of recruitment is the number of closed purchase and sale operations in a given time space. In this case, carried out in the equity markets and which ultimately determine the real state of these financial markets. In one way or another.
This information can be very valuable to develop any strategy in investment. Beyond a series of technical considerations and also from the point of view of the fundamentals of the stock market values. Nothing better than to achieve our most immediate objectives than to know the information that a high or lower volume of recruitment can offer us. And that can help us plan and make profitable savings with greater guarantees of success. As it will be shown through the following actions that we are going to expose you below.
Trading volume: trend
If a high or low subscription volume is met with respect to the preceding trading sessions, it constitutes a confirmation of the stock market trend. Both in bullish and bearish scenarios. Where the fact that they are very striking increases in the negotiation and that affect the configuration of their prices is of special relevance. Well, when this develops, we are facing a change in trend. Either from bullish to bearish or vice versa, depending on the conditions of the equity markets. To the point that it can become a powerful tool to open or undo positions in the affected values.
Strengthening of movements
On the other hand, when there is a substantial variation in the exchange of securities, it can be the clearest signal that a continuation in trend reigning until then. It is very common that it occurs in the large values of the equity markets. But also something very important and that is that there are usually no errors of great intensity in the identification of these movements in the stock market. On the contrary, they are quite reliable and do not require special experience to be able to detect them in time. Because they usually happen when we already have the securities in our investment portfolio.
Low volume, less reliable
Another of the strategies that we can use below is the one that has to do with the intensity of these movements. Because if the volume of contracting is very small, it means that the appreciations or revaluations of the values are very poorly founded. In other words, we should not pay special attention to these movements in the equity markets. Its reliability, therefore, will be practically nil and we will have no choice but to wait to check the response of the actions.
Business facts
Another incident that can generate a change in the volume of contracts is that relevant events are taking place in the listed company. Until varying with more or less intensity the title exchange in equity markets. Do not doubt at any time that they can give you more than one signal about what you have to do from that moment on. Both in one sense or another, and therefore it can give you some powerful signal to open or undo positions in the contracted securities. In addition, it is a strategy that offers you an important reliability in its resolution.
Lack of interest on the part of investors
On the other hand, a weak negotiation in its securities means that the security does not enjoy the confidence of the different financial agents and among which investors are included. In this sense, you can easily check what the stock market values are most traded in equity markets. Beyond other technical considerations and that in any case can help you channel your investments from now on. It is also a system that offers great security about the results that can be originated through your investment strategies.
Business cycle change
Another of the scenarios where the change in the trading volume it is when there is a change in the cycle of international economies. Generally with an increase of the same and that can also give you some other clue about what you have to do with your investments. However, it is a very complex system that requires further learning in identifying these movements in the equity markets.
As you have been able, the volume of contracts is more than a mere exchange in the securities or financial assets. And from which you can get important information about the companies so that you can buy or sell your shares on a certain moment. And in this way you can make your operations on the stock market profitable above other considerations.
These are aspects that can help you carry out your investments with particular success from now on. In a simple way and that can be adapted to your management models, whatever their nature or procedures. Which is at the end of the day what it is about.