Who Moved My Stock Price?
Stock Market Is Made Up of Three Types of People
The stock market is made up of three types of people 1) buyers, 2) sellers and 3) the undecided one.
The Reason Stock Market Moves
The reason that the stock market moves is the buyers buy and the sellers sell. The cause of the stock price moves up is because there is more demand than the supply. Or you can say that there are more traders wanting to buy than the traders willing to sell. In this case the buyers are more enthusiastic than the sellers; or simply more buyers than sellers. Of course for every trade there have to be a buyer and a seller.
The Price Action Is
Price on a chart is the representation of a price action or the final emotion of the buyers and sellers. Each tick is a representation of a consensus of the buyer and seller.
The Reason Trend Change
A change in trend or a reversal occurs when there is a news or information that causes the buyers and sellers to change their mind or emotion. In other words, a bull trend or bear trend will not change overnight, a bull back is always a result of a news or piece of information that the traders think it is important enough the change their mind.
Golden Agri Resources, E5H
Last Tuesday, February 28, 2012 an article on Straits Times reported that Golden Agri’s net profit falls 38% to S$114 million (US$91 million) on fourth quarter. Will this information alter Golden Agri bullish trend since October last year? If so, will this trend change going to stay and ending the last bullish trend? Will see.
Who Moved My Stock Price?
On the same period, another similar stock, First Resources was reported profit. Will this affect your emotion? Will you quick in taking profit? Who moved your stock price?
Golden Agri Daily Chart
Golden Agri Daily Chart, March 2, 2012
Golden Agri Weekly Chart
Golden Agri Resources E5H Weekly Chart, March 2, 2012
Welcome to Moses’s Singapore Stock Analysis at AmiBrokerAcademy.com. Thank you for visiting the site. You are here because you want to know why the stock moves or which stocks will move in the near future.
By Moses, March 4 2012
DSICLAIMER
Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should not be considered as an offer or enticement to buy, sell or trade.
You should seek advice from your broker, or licensed investment advisor, before taking any action.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.