Stock Markets Exposed

Which is better: Low volume and high stock price increase or high volume and smaller stock price increase?

I'm in a stock market game and make daily trades. One stock (CGO) went up $7.75 (43%) to 25.65 after hours. However, this was only on 1,000 volume. Its average volume is 22,000. The other stock (VRGY) increased 3.67 (17.43%) to 24.72 after hours on 226,000 volume. Its average volume is 383,000. Should I buy CGO or VRGY for tomorrow?

Public Comments

1. Those daily trades will get you an enormous tax bill, and its not recommended for most. I would classify the low volume one as an aggessive growth stock (small company), and the high volume as a well established company. It depends on what you want: value or growth. Neither is better than the other. Personally, I would invest in both.
2. It partly depends on whether your stock game looks like the real life stock market. In real life, if you daytrade based entirely on reacting to today's price movement and volume, then (a) your money will get chewed up quick by the brokerage fees, even at a cutrate place (b) you'll probably lose all your money quickly anyway. Of course, if the game doesn't charge you any fees at all, or take into account the bid/ask spreads, then it's not much like real life.
3. Stocks sometimes take a very short term spike, like one person puts a wrong number in or something. But unless there is sufficient volume to support the new price, it will fall, possibly faster than it rose. A little volume with a price increase shows interest, a lot of volume with a price increase shows momentum.
4. Statistically speaking, when the daily volume of a stock has a high % increase, an increase in stock price should follow. As they say follow the money. I'd go with the VRGY.