For every single trade, there is always a buyer and a seller.
The Reasons for Selling
Seller: "This stock stinks. I can make more money somewhere else."
Seller: "I need money for my new car."
The Reasons for Buying
Buyer: "This company is going to make me some money."
Buyer: "This company is going to make me some money."
There are a few reasons for selling a stock, but there is usually only one reason for buying a stock. :-)
The seller thinks the stock stinks, whereas the buyer thinks the company is great.
The seller thinks the stock is still good but he needs the money, and the buyer bought because he thinks the company is great.
Thousands of orders a day cause the market price of a company to move up and down. However, the market price of a stock is determined only by a small number of players and not by all of the people.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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