Hey, Traders,

Happy New Year! 

I hope everyone is prepared for an abundant 2026, and since I’m contemplating the year ahead, I decided to build this e-letter around volume — a topic that can help you get there.

Back when I first started trading, I’d see a stock going up and I’d chase it because I thought price was what mattered most.  

But what I didn’t realize then was how volume tells the real story. 

Price may show what’s happening, but volume — the number of shares traded during a given time — shows how strong it is.

For example, let’s say a stock is breaking out over a key level … 

If that move happens on big volume, it means more traders are buying in, creating strength. 

But if that same breakout happens on low volume, it could be a fake move that might not hold.

Volume helps confirm patterns, and particularly with morning spikes. 

When a stock gaps up and volume pours in early, it can lead to big upside. 

But if the volume fades fast, that spike might die just as quickly. 

Same with breakouts: A clean breakout with no volume isn’t usually worth the effort.  

But if the breakout has huge volume behind it, that tells me buyers are serious. 

It’s not guaranteed, but it stacks the odds in your favor.

Here’s how I look at it. 

Groupthink in Real Time

I always check volume before I enter a trade because it shows who’s in control, regardless of whether it’s a breakout, a dip buy, or even a panic drop. 

Are buyers stepping up? Are sellers panicking? 

You can feel the emotion in the chart when the volume kicks in.

One big thing I’ve learned is that volume tends to come in waves. 

You get those moments where everyone rushes in at once, and that’s when the big moves happen. 

It’s usually early in the morning, or right at key levels. 

If you miss that wave, you’re often too late. 

So I’m always scanning premarket to see where the volume is starting to show up. 

I want to be early, not chasing.

Surf’s Up

Another reason volume works is because it shows interest. 

If a stock trades 50 million shares in a day, that’s not happening by accident. It means people are watching, and traders, algorithms, and institutions are all in the mix. 

But with low volume, you’re basically trading alone. 

And that’s risky because you can get stuck in a position with no exit.

It’s like trying to surf without a wave — you can have the perfect setup, but without volume, there’s just no momentum to carry you forward.

Volume doesn’t lie. 

Once you learn how to read it, you stop chasing junk moves and start focusing on real opportunities.

It’s one of the biggest reasons I went from losing to winning consistently.

Stay sharp, 

Jack