Investor’s come into the many shapes and forms, but there are two basic types. First , the more conservative type, who will choose a stock by viewing the basic value of a company. And the second type of investor attempts to estimate, how the market may behave based purely on the psychology of the market’s people
This belief is based on the assumption that a company is run well and continues turning a profit,or shares. You can easily The Free Stock Trading Market price will rise. After a stock makes a huge run up in price and becomes the topic of conversation between customers at the store.
These investors try to buy growth stocks, those that appear most likely to continue growing for a longer term. If you don’t cut your losses, they can run lower until your grave is too deep. The problem is that, people sit and hope that the stock come back to the price they purchased it at, and as they sit and wait, the stock drops lower until your grave is too deep.
If you are new traders in the share market , and you could become a stock market genius, following some tips.
- Try to Predict and Anticipate What Will Happen Next
- They Don’t Know When to Sell
- They Buy More Stock as it Drops in Price
- Lack of Knowledge
- They Try to Find a “Diamond in the Rough” that Nobody Else has Found
- They Flock to the Stocks that have Already Seen Their Biggest Gains and are Obvious to Everybody
- They Listen to Wall Street
- They Watch TV and the So-Called “Experts”.
- They Want to Get Rich Quick
This share market theory also implies, that is analyzing stocks is pointless since all information known is currently reflected in the current price.
- Analysts information about a company and determine value.
- The stock market sets, values and prices.
- The efficient market theory is as the name implies, a theory. If it were law, prices would instantly adapt to information as it became available.
To make fundamental decisions, all of the following factors must be considered. The previous terminology will be the underlying factor in how each will be used, based upon investor bias. As usual, a particular company is the main deciding factor. Company earnings are the profits after taxes and expenses.