Thursday, 19 February 2015

Profit and price relation in share market

If you see dark clouds in the sky, does it mean it will always rain? Noo.. It will not. Same relation can be found in share market. If you come across a news that mentioned particular company has earn some profit in some quarter result, then it does not necessarily means that share price of that company will rise. In-fact, this might be a trap for sincere traders like you.

Smart traders will try to accumulate share and will raise a price bit by bit to make a bait for you so that you will feel that, oh wow! this company recently got profit and lots of people are buying shares. 

Don't fall into such traps. Because as soon as you purchase share of such company, smart traders will immediately sell out their shares and will leave you in pit hole from which it will take some days to you to recover your money from it. 

Be sincere and smart trader and keep your emotions aside when you investing in stock market. 

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