Provided By Ultimate Trading Systems
News & Sympathy Plays For Stock Market Trends
News, slap-up or bad, trumps all in all other form food trade trends. high- outlayd discussion about a company, or about some other company in the same field if the sector is a hot nonpareil, can trigger sharp rises in sprout prices. The key to taking advantage of price runs started by intelligence agency is to get in early, before everyone else has. Obviously, if youre the last one in, youll buy at the highest price and then watch the impart price go down.
Likewise, bad news can cause interdict stock marketplace trends. And, like everything else in the market, what matters is not whether the news is really good or bad, but what the stock market trends perceive it to be. You might not think the stock market trends reaction to a piece of news makes any sense, but should not affect your trading. Always go with the market. Remember, news overrides all other stock market trends.
Lets say youre holding a company heading into its upcoming split. The stock is in a hot sector, and its a one to four split. The stock is rising nicely, and the ex-date is three days away.
The next morning, you see surprising news that business in the companys sector has dropped off sharply in the last quarter and that this slowing is projected to continue for at least the next sise months. Whats going to happen to the split run? This news leave take precedence over the split stock market trends.
Unless the market decides it doesnt care about this news, which is not likely, the companys run is over. You will have to get out of the stock. When crucial news comes out, all successful traders abandon trades based on other stock market trends. Unexpected news is one of the main reasons why you must set stops on every trade to protect your capital. In the same way, if youve change short to ride stock market trends in which stocks usually go down, significant good news about the stock should send the stock...If you want to get a full essay, station it on our website: Orderessay
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