What Is Volume in Stock Market? A Simple Guide for Everyone | Firstock

Have you ever noticed numbers moving rapidly below a stock price and wondered, “What do these figures actually mean?” That number is called volume, and it quietly tells a powerful story about buying and selling activity in the stock market.

If stock prices are the “voice” of the market, then volume in stock market is the energy behind that voice. Without volume, price movements lose meaning. Whether you are a curious learner, a long-term investor, or someone exploring a stock trading app for the first time, understanding volume can change the way you see the market.

In this detailed yet simple guide, we will break down what is volume in stock market, why it matters, and how beginners can use it confidently—without complex jargon or confusion.

Learn what is volume in stock market, understand volume in stock market, trading volume in stock market, stock volume trading, and how a stock trading app helps beginners.

Introduction to Volume in Stock Market

When people first step into the stock market, they focus mostly on prices—Is the stock going up or down? But price alone is like watching only half a movie. To understand the full story, you need volume.

Trading volume in stock market helps answer critical questions like:

• Is the price movement real or fake?
  
  

• Are many people interested in this stock?
  
  

• Is this trend strong or weak?
  
  

Volume gives you confidence. And confidence is priceless when you’re starting your journey with trading apps for beginners.

What Is Volume in Stock Market?

So, what is volume in stock market, exactly?

Volume refers to the total number of shares traded (bought and sold) in a specific period of time—usually in a day.

Example:
If 5,00,000 shares of a company are bought and sold in one trading day, then the volume is 5,00,000.

Simple, right?

Volume doesn’t care whether traders made profits or losses. It only tracks activity. And more activity usually means more interest.

Why Volume Matters More Than You Think

You might ask, “Why should I care about volume?”

Here’s why volume in stock market is so important:

• Confirms price movement
  
  

• Shows market interest
  
  

• Reveals strength or weakness of trends
  
  

• Helps avoid fake breakouts
  
  

Think of volume as a crowd’s reaction. A loud cheer (high volume) means excitement. A silent stadium (low volume) means nobody cares.

How Trading Volume in Stock Market Works

Every trade has:

• One buyer
  
  

• One seller
  
  

Each completed transaction adds one unit to trading volume.

So when thousands of people trade the same stock, trading volume in stock market increases automatically. Volume resets daily and starts fresh every trading session.

Modern stock trading apps show this data instantly, making it easy for beginners to track activity in real time.

Understanding Volume with a Simple Analogy

Let’s use a real-life analogy.

Imagine a vegetable market:

• One shop with many customers → Fresh, popular vegetables
  
  

• One shop with no customers → Old or unwanted stock
  
  

Stocks work the same way.

A stock with high volume is like a busy shop—people are interested.
A stock with low volume is like an empty shop—few buyers and sellers.

This is why stock volume trading matters so much.

Types of Volume in Stock Trading

Volume isn’t one-size-fits-all. Let’s simplify the main types:

Normal Volume

This is the average trading activity of a stock.

High Volume

Happens during:

• News announcements
  
  

• Results
  
  

• Breakouts
  
  

Low Volume

Seen when:

• Market interest is low
  
  

• Stock is inactive
  
  

Each type sends a message—learning to read it gives you an edge.

Volume vs Price: How They Work Together

Price and volume are best friends.

Price Up + Volume Up

✔ Strong buying interest
✔ Healthy trend

Price Up + Volume Down

⚠ Weak movement
⚠ Possible reversal

Price Down + Volume Up

⚠ Strong selling pressure

Price Down + Volume Down

✔ Selling pressure is fading

Understanding this relationship is the foundation of stock volume trading.

High Volume vs Low Volume Explained

High Volume Stocks

• Easy to buy and sell
  
  

• Better price stability
  
  

• Preferred by beginners
  
  

Low Volume Stocks

• Harder to exit
  
  

• Higher price swings
  
  

• Riskier for new traders
  
  

That’s why most trading apps for beginners highlight volume clearly.

Stock Volume Trading Strategies for Beginners

You don’t need advanced skills to use volume. Start simple:

Breakout with Volume

When price breaks resistance with high volume, the move is usually strong.

Volume Spike

Sudden jump in volume signals news or big player entry.

Volume Dry-Up

Low volume after a fall may suggest selling pressure is ending.

These basic strategies work well when used carefully.

Common Volume Indicators Explained Simply

Many indicators use volume, but don’t worry—here are beginner-friendly ones:

Volume Bars

Shows daily trading activity visually.

On-Balance Volume (OBV)

Tracks whether money is flowing in or out.

Volume Moving Average

Compares current volume to past activity.

Most stock trading app include these by default.

How to Read Volume on a Stock Trading App

If you’re using a stock trading app, you’ll usually see volume:

• Below the price chart
  
  

• In numeric form
  
  

• As bars or lines
  
  

Tip for beginners:
✔ Compare today’s volume with previous days
✔ Watch volume during breakouts
✔ Avoid low-volume stocks initially

Good trading apps for beginners make this simple and visual.

Volume in Day Trading vs Long-Term Investing

Day Trading

• Volume is crucial
  
  

• High volume = quick entry and exit
  
  

Long-Term Investing

• Confirms trend strength
  
  

• Helps spot accumulation
  
  

No matter your style, volume in stock market plays a supporting role.

Mistakes Beginners Make While Using Volume

Let’s save you from common errors:

• ❌ Ignoring volume completely
  
  

• ❌ Trading low-volume stocks
  
  

• ❌ Assuming volume alone predicts price
  
  

• ❌ Overcomplicating analysis
  
  

Remember, volume is a supporting tool, not magic.

Why Trading Apps for Beginners Show Volume

Ever noticed volume displayed everywhere on a stock trading app?

That’s because:

• It improves decision-making
  
  

• It reduces risk
  
  

• It builds confidence
  
  

Platforms like Firstock ensure volume data is easy to understand, even for first-time users.

Final Thoughts on Volume in Stock Market

Understanding what is volume in stock market is like learning to read the market’s heartbeat. Price tells you what is happening, but volume tells you how strongly it’s happening.

If you’re using trading apps for beginners, don’t ignore volume. Watch it, compare it, and slowly learn its signals. Over time, it becomes a powerful ally in your trading journey.

Frequently Asked Questions (FAQs)

1. What is volume in stock market in simple words?

Volume is the total number of shares traded in a stock during a specific time period, usually one day.

2. Why is trading volume in stock market important?

It shows how much interest traders have in a stock and helps confirm price movements.

3. Is high volume good for stock trading?

Yes, high volume usually means better liquidity and stronger price movements.

4. Can beginners use stock volume trading strategies?

Absolutely. Simple volume-based strategies are ideal for beginners using trading apps.

5. Do all stock trading apps show volume data?

Most modern stock trading apps display volume clearly to help users make informed decisions.