Most Traded Shares by Volume in 2020 and What to Look Out For
The Trading Market is continually changing, and there is no better way to see the economy’s state than looking at the market. It had its ups and downs every year. But, 2020 was still something different due to Covid-19. But the trading itself hasn’t stopped, and we’ve witnessed an enormous rise in some stocks and how everything is possible. Looking at what people are buying or investing in can give you a great picture of how the economy is doing and even see where it’s headed even if you aren’t a trader.
It is interesting to see how most traded shares became the most traded and why. Analyzing the market can be a chore sometimes, but that’s why we decided to compile a list of the most traded shares (by volume) in 2020. From Bitcoin trading and its rise to cryptocurrency trading in general, we will cover the most traded shares of any sort and see how they became what they are not, and how their value skyrocketed.
What is Trading by Volume?
“Volume” in trading is a term that decides the amount of a specific asset or security that changes hands over a certain period (usually in a day). This means the stock trading volume will identify the shares of a security number that was traded between daily opening and closing. What’s important for technical traders are changes to volume during a specific period. In general, securities with higher daily volume will be more liquid because of their “active” nature.
It’s useful to know the volume in technical analysis serves as an indicator to measure the relative significance of market moves. When you know this, it is logical to assume that during a price move, the higher the volume is, the more significant the price move will be, and it will be less meaningful if the opposite happens.
How to Find and Read Volume
Reading charts is a completely usual thing when you are a trader. You will find volume most often at the price chart’s bottom. It’s a vertical bar that represents the volume in total for the specific charting time. Its bars are usually green or red. For example, green means net buying volume and red is net selling volume. You can easily spot most traded shares during that day. Traders who like day trading will likely go choose a stock with volume because it allows them to quickly get into a position and get out of it equally fast. It doesn’t matter whether it’s a large or small position.
It may seem unusual at first, but da traders will go either with stocks/exchange-traded funds (ETFs), that have a high average volume, or lower-than-average volume. Why? Because lower-than-average volume implies much less interest in a particular stock and that day, there will be smaller price movements. If you only want to analyze the volume, it can be helpful to isolate the stock you are thinking about using during a day-trade. Day trading stocks are great if they have more average volume because you can exit or enter quickly.
Rising Stocks in 2020
There are three types of factors interesting for traders: Value investing, momentum investing, and growth investing. All of the stocks mentioned above are the one that continues to thrive in 2020, or they’ve started their way to the top. We can certainly expect even more from them in 2021. We are going through them briefly to focus on some main shares you should pay attention to the most.
Brookfield Property Reit and NRG Energy Inc. performed excellently in 2020. The NRG Energy service has around 3.7 million customers, and the settlement with Direct Energy is close. Direct energy acquisition will influence the company’s price (which is currently underpriced), and experts believe it will rise significantly very soon. Brookfield is a real estate company, and we can also expect it to grow because their goal is to create long-term returns on 12%-15% of equity.
Fast Growing Stocks
The fastest-growing stocks with most traded shares would be Zoom, together with Salesforce Inc. widely thanks to the pandemic and changing the way we communicate, hold meetings and work in general. Imagine how much Zoom has grown since their net income rose to 355 per cent.
Salesforce.com, on the other hand, is a software, cloud-based company. They offer CRM programs that are great if the company has many clients, and they have offered a solution to over 150,000 companies.
Of course, we cannot go without mentioning Tesla Inc and Moderna Inc, since they are stocks you should pay attention. Why and how did they became so strong? Tesla has been showing continuous effort and growth as the company made and delivered 90,000 vehicles in the last quarter of 2020.
We cannot argue this was a surprise no matter how diligent Tesla is, and they are a company to work with if you want a safe bet. Moderna Inc is essential because it’s a biotechnology company that focuses on RNA vaccines and therapeutics. Just Canada has ordered 20 million doses of the Covid-19 vaccine.
London Stock Exchange (LSE)
London Stock Exchange implies that most traded shares by volume currently are Lloyds Banking Group plc, Rolls Royce Holdings Plc, BP Plc, Vodafone Group Plc, and Glencore Plc.
Stock screeners are types of online software you can customize. They are helpful if you want to find out which stocks to invest in based on specific requests, such as volume, price, industry, etc. You can create a screener for ETFs, stocks and mutual funds purposes. What’s great about them is that you can get various financial highlights, key statistics and valuation measure filters. It’s a matter of preference whether you want to use premade screeners or create your own.
It seems like the future is bright if you do a bit of research and continue observing charts regularly. Being informed is one of the crucial factors for a profitable trader, and knowing the most traded shares in 2020 and those that are about to bring the same results can help you immensely with your trading plans. Dive a bit deeper into some of the companies we’ve mentioned and consult with an expert about what to do, and how to get the best out of 2020s most traded shares.