Wed, 13 May 2009
Troy’s Blog
What I have learned so far. Part 3.
Good news doesn’t always make the shares go up and conversely bad news doesn’t always make them go down. Weird I know. It still freaks me out. How is this possible and why does it happen? Again there are people out there that will tell you they know, but I think no one really does. Sometimes it can be because the news is already ‘priced into’ the shares, so the market knows the news already through leaks, or the market wasn’t paying attention and missed things. Honestly, how a worldwide market with so many people misses data still makes me smile. It’s a regular occurrence though and one that if you are on the upside of, it’s great, but when you think you have a stock sussed out, buy at a low and expect it to go up on good news, it’s frustrating when it lays there, limp and unaffected.
The whole market can go down, even if your stocks are nothing to do with what’s dragging it down. I know this might sound obvious given that the global economy tanked mostly on banks, but this will also happen on a normal day in the markets. Essentially the markets trade on news (that’s why there is so much info flying about) and certain bits of news are scary to the traders, others they don’t care about so much. This can affect all shares, not just the one sector.
There are always investments doing better than yours are. The front page of Google Finance has a box marked “Trends” and it toggles between Price, Volume, Mrkt Cap, and Popular. One quick glance at Popular or Price on any day will provide shares that are in the upper 50% + and even one the other day I saw that was up 1350%! Yes it depressed me that I hadn’t invested my £50 in them, yes I was imagining if I had in my head but no, I didn’t so get over it. There is always someone doing better than you are, move on and keep investing, one day it will be your turn.
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