Investor Psychology
- By Trusha Desai
- •
- 10 Sep, 2015
- •
September 10, 2015
When a stock's revenue grows by 0.33 (estimate 0.29) and yet it declines by over 8.5% in morning trades: what do you say?
Is this an issue with the stock or consumer perception? Is this an issue of shorting the stock and manipulating the market or of genuine volatility that allows a free-fall? Is this an instance of puts over-riding calls resulting in the nay-sayers winning over the bulls? Is this an instance of consumer emotion being a side dish while the entree is over-riding beta?
Do we know who the wolf is? Do we know what makes Wall Street work? Or do we simply stand on the sidelines and watch millions being lost at the drop of a hat?
Please remember that this is a discussion piece, and any investment advice should be obtained in a suitable manner.
Is this an issue with the stock or consumer perception? Is this an issue of shorting the stock and manipulating the market or of genuine volatility that allows a free-fall? Is this an instance of puts over-riding calls resulting in the nay-sayers winning over the bulls? Is this an instance of consumer emotion being a side dish while the entree is over-riding beta?
Do we know who the wolf is? Do we know what makes Wall Street work? Or do we simply stand on the sidelines and watch millions being lost at the drop of a hat?
Please remember that this is a discussion piece, and any investment advice should be obtained in a suitable manner.
When does your money double? If you do earn a high rate of return, please watch the tax implications of your investment.
Straddles or a purchase of a stock prior to revenue announcement could be a risky strategy.
Momentum is an oscillator that can make movements in your stock portfolio of prime importance. It is one of the technical analysis tools that must be identified and observed while purchasing or selling.
