Something about Finance 6! - Gain or Loss?
Dear readers,
For the two weeks of March 2009, the Dow Jones has recovered at least 1,000 points due to the rally of financial institutions and real estate companies. These were caused by concurrent news that became known to the public showing profitable results for the first two months of their operations. In my last posts I told you about the charts, but then, in the example above we see that business news and current events have a direct effect on the market. Well, put it this way, what is the market composed of? -- People, and by nature most people go with their gut feel and based on their emotions. So, if you yourself read those news, don't you think you would agree in buying that stock at a higher price because you would think that it will go up further? Maybe yes, or maybe no. Some did, some did not. For those who did, they got the gains and also losses depending on how long they have waited. For those who did not, well it's a lost opportunity but no loss nor gain.
The charts can only guide you so much, the ultimate factor should be on your feel of the market and on how knowledgeable you are with what's happening in the news and in the companies you are investing in. You must also consider your plan whether it is long-term or short-term. By this, if you are on a long-term basis then you should be caring for simple fluctuations in the market like what is happening now. Of course you would now if your doing short-term trading which is basically buy and sell of stocks for gains. Depending on how you play the stock market both plans have different leverages and different risks attached. So either way, you should study and observe first before you make a decision to buy or sell.
It's a friday today, the end of another trading week. Let's see what's gonna happen next week and just hope some good news will come our way! Cheers everyone! :)
For the two weeks of March 2009, the Dow Jones has recovered at least 1,000 points due to the rally of financial institutions and real estate companies. These were caused by concurrent news that became known to the public showing profitable results for the first two months of their operations. In my last posts I told you about the charts, but then, in the example above we see that business news and current events have a direct effect on the market. Well, put it this way, what is the market composed of? -- People, and by nature most people go with their gut feel and based on their emotions. So, if you yourself read those news, don't you think you would agree in buying that stock at a higher price because you would think that it will go up further? Maybe yes, or maybe no. Some did, some did not. For those who did, they got the gains and also losses depending on how long they have waited. For those who did not, well it's a lost opportunity but no loss nor gain.
The charts can only guide you so much, the ultimate factor should be on your feel of the market and on how knowledgeable you are with what's happening in the news and in the companies you are investing in. You must also consider your plan whether it is long-term or short-term. By this, if you are on a long-term basis then you should be caring for simple fluctuations in the market like what is happening now. Of course you would now if your doing short-term trading which is basically buy and sell of stocks for gains. Depending on how you play the stock market both plans have different leverages and different risks attached. So either way, you should study and observe first before you make a decision to buy or sell.
It's a friday today, the end of another trading week. Let's see what's gonna happen next week and just hope some good news will come our way! Cheers everyone! :)



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