What are the points to be considered while studying market?
Answers
Explanation:
Global economics, laws and bills in country and international treaties, merger or acquisition talk surrounding a company, new product releases, innovations, health of owners and important people in companies, pending lawsuits or legal troubles, and new opportunities world-wide. I doubt I could list everything here. I can say I invest in pharmaceutical and biotech companies almost exclusively. I do this by following FDA trial phases (3 phases) and determining if the drug in question has a good chance of being approved. Each phase will get approved or rejected and this will usually dictate at least a small boost or decline in stock prices. Approval for human trials and a following success (approval for market release) would usually yield the highest jump in stock prices. This will be small for a pharma giant like Pfizer and huge for Arena pharnaceuticals who released the first weight loss drug in 13 years a while back. Their stock jumped from $1.25 up to a peak around $17. I bought in at $2.15 and sold at $13.50 a share. It was my biggest stock market win. You can also look to buy very low if a company absorbs the losses from a death in trials or after release but has the money or funding to continue their efforts. This will put them in penny stock territory and with some decent work and a few breakthroughs, they will balloon quickly and close to their original value due to a knowledge of what they can be.
A strong piece of advice is to stay away from the “guaranteed” ways to make money that people offer as means to win in stocks. Some actually made their riches off their scheme, but most of these schemes required loop-holes which are now closed or they require computers with processors faster than normal people have or can afford. So just study trends and what will happen in response to a certain action, think what may affect an industry or businesss within and follow activities relating to this, act quickly on knowledge and sometimes you must gamble on outcomes or decisions to beat or at least tag along with the other people who are much more experienced or just more well informed, and never assume penny stocks are a money volcano waiting to explode because they are simply a bad stock or even shell companies. For long-term, money management purposes, put your money in stocks of companies with long history of not only survival but more importantly change to adapt and survive such as a relatively recent explosion of Amazon (they will make it for quite a while), Google and other large tech and consumer product companies. A poor stock in my opinion would be Nike. I mean it is Hugh and a great company, but what would grow in over time? Not really anything. They make shoes, most people have them, and we have a basic limited need for more. Just an excessive amount of study, analysis and some luck and bravado is a must to make money in stocks, especially day-trading which is reserved for the most rabid and devoted stock minds (you can get here, it just takes a ton of work to succeed here). Let me know if you have any questions.