Volume isn’t just an annoying math equation ❌🧮
And volatility isn’t just about dangerous electric wires ⚡
These two terms can tell us a lot about a company’s stock 🤔
Volume = Number of stocks that have been bought & sold in a time period! 🛍️
This helps investors understand how active + popular a stock may be 🤩
On the Bloom app, you can see “Today’s Volume” or total trades over 1 day in the Stats section 🔍
High Volume = Lots of shares are being traded 📈So, there’s lots of investor activity
Low Volume = Fewer shares are being traded 📉So, there’s less activity or interest in the company
Now that you understand the level of activity for a stock, you need to understand the risk 🤓
This is where “Volatility” comes in 👉
Volatility = how drastically the stock’s price is changing overtime 😮
Higher the volatility = greater risk, since the price is changing a lot 👀
Lower the volatility = lesser risk, since the price is changing less 😊
Volatility is expressed in risk ratings, which we’ll learn more about in later lessons!
But, now you know that risk is related to a stocks’ volatility 🧠
By looking at both volume and volatility. . . 🤝
You can see if a stock is both popular and risky, or less popular but low risk 📈
It’s important to note that volume and volatility change over time! 💡
So, consider turning on Bloom notifications for price updates so you can regularly check your investments 🤑
