What does a large volume decline in stocks mean?

Simply put, a large volume decline in a stock refers to the significant trading volume that accompanies the price drop, which is the number of people who sell. A large volume decline in stocks is a very dangerous signal, indicating that most funds are not optimistic about the future market, so they choose to sell one after another, and the stock price will fall to a new high in the short term.

Volume increase refers to a sudden increase in trading volume, for example, if the daily trading volume is usually several million lots, and suddenly the daily trading volume reaches tens of millions of lots, this is called volume increase. So a significant decline in trading volume is due to a surge in the number of sellers, and the most common reason for a significant drop in stock prices is due to scandals, penalties, or a sharp drop in company performance and profits. These are all major negative factors that can cause investors to fear and choose to sell their positions.

Stocks often experience a period of continuous volume decline, only stopping when the short selling momentum is fully unleashed (i.e. when trading volume enters a contraction or volume). Due to the difficulty in accurately grasping the starting point of a large volume decline and the inability to capture the bottom of the decline, individual investors often become like leeks in this continuously declining environment.

The above is the analysis and answer to the question of what it means for stocks to experience a large volume decline. We hope it can be helpful to you. When the stock price drops in volume, pay attention to the turnover rate. When the turnover rate increases, accompanied by an increase in trading volume, it is a true bearish trend.