Elisha755
New member
Before you make a decision about the purchase of a particular stock you should do an extensive research and analysis of the company that issue the stock.During your preliminary study, however, The price of the selected stock may start to increase.
this increase may be caused by a major breakthough in the industry or an announcement about the company, which make the stock a hot deal. Additionally, even a small positive comment about the company may lead to the turning of traders attention toward the particular stock.
Once the future increase in the price of the stock is sensed, trader may pile up to further drive the price up. The opposite process may be implemented for the purpose of decreasing the price of the stock.
Initially you have selected the stock so that you can participate in it's growth. However,you are deprived of investment premise for executing the trade.
The good news that has increased The price of the company's stock had led to the mismatch between the actual value of the stock and the market price
Nevertheless,if you still decide to make the trade you will no longer be an investor but a speculator. This is so since you haven't bought the stock because of its potential for growth. The stock price was artificially inflated by speculation.
On the other hand, The opposite may happen, namely that the price of the selected stock falls. You can only benefit from this since you will be able to purchase the stock at a lower price. However, you should see whether the Fall was not due to some inner company problem which may reflect in one way of another on your future returns.
if no problem can be found within the company,a stock with a falling price may represent a good long-term investment. However ,you should not jump into the deal, but instead make all the necessary investigation so that you decrease the possibility of investment failure
this increase may be caused by a major breakthough in the industry or an announcement about the company, which make the stock a hot deal. Additionally, even a small positive comment about the company may lead to the turning of traders attention toward the particular stock.
Once the future increase in the price of the stock is sensed, trader may pile up to further drive the price up. The opposite process may be implemented for the purpose of decreasing the price of the stock.
Initially you have selected the stock so that you can participate in it's growth. However,you are deprived of investment premise for executing the trade.
The good news that has increased The price of the company's stock had led to the mismatch between the actual value of the stock and the market price
Nevertheless,if you still decide to make the trade you will no longer be an investor but a speculator. This is so since you haven't bought the stock because of its potential for growth. The stock price was artificially inflated by speculation.
On the other hand, The opposite may happen, namely that the price of the selected stock falls. You can only benefit from this since you will be able to purchase the stock at a lower price. However, you should see whether the Fall was not due to some inner company problem which may reflect in one way of another on your future returns.
if no problem can be found within the company,a stock with a falling price may represent a good long-term investment. However ,you should not jump into the deal, but instead make all the necessary investigation so that you decrease the possibility of investment failure
