Finding Information That Drives Shares And Currency Prices

Finding Information That Drives Shares And Currency Prices



Finding Information That Drives Shares and Currency Prices
Fundamentally, all market activity is a​ response to the interaction of​ personal opinion. ​
Somebody wants to buy, somebody wants to sell, and ​ thereby a​ market is made.
Either way, the impulse represents a​ human judgment of​ how business is going, how the market is reacting to the business trend, and ​ how, under these circumstances, this stock or​ that one will fare. ​
The fascinating thing is that regardless of​ the situation, two essentially contradictory points of​ view—to buy and ​ to sell—can always be reached.
Information can move a​ share price or​ currency dramatically, even if ​ it​ is not 100% correct.
The same influence may not govern each case; the man who buys Alcoa may have become convinced that aluminum has a​ bright future, while the man who sells may simply be taking a​ profit on his holding; but the fact remains that differences can be reconciled in a​ trade.
The motivations of​ buyers and ​ sellers are not well enough understood for any very precise theory to be constructed around them, but it​ seems reasonable to launch this chapter, and ​ the two which follow—all of​ them concerned with the hard information that presumably influences investors—with some recognition of​ the emotionalism that is also involved. ​
Much of​ it​ is highly sophisticated these days; it​ has been a​ long time since the blind panic of​ the dreadful days that heralded the Crash and ​ the depression; but it​ is emotion nevertheless.
As recently as​ September, 1955, when the market plummeted nearly 32 points for a​ loss of​ $14 billion in values on the news of​ President Eisenhowers heart attack, we had dramatic evidence that the market does not have absolute control of​ its nerves. ​
And, by contrast, in December, 1957, the market recovered in a​ few hours the losses occasioned by momentary alarm over the Presidents cerebral occlusion. ​
There are, of​ course, many practical—and credible —explanations for both responses the first occurred as​ an election year approached, Ikes symbolic importance was still immense, the business philosophy he represented was in jeopardy, the second occurred at ​ a​ point when the fact of​ an ill president had already been discounted, Ikes political significance, as​ a​ president who could not succeed himself, was on the wane. ​
Etc.
Undeniably, however, all of​ these arguments were based on guesses as​ to the shape of​ the future, given one set of​ circumstances or​ another. ​
And it​ is the unpredictability of​ the future which inevitably injects emotion into stock market transactions. ​
Pondering the past and ​ scrutinizing the present, investors—professional and ​ nonprofessional alike—seek signs and ​ portents which will predict the impact of​ tomorrow on their fortunes.
Since the future is largely a​ blank map, investors must do the best they can with whatever current information they can acquire to carry them to the frontier of​ tomorrow.
Much of​ it—make no mistake—is extremely useful. ​
But it​ must also be said that in the absence of​ surefire criteria, the investment world examines every scrap of​ possibly relevant information for clues.
The result is that the new investor, eager to acquaint himself with business and ​ financial news, soon finds that his problem is not obtaining information, but digging himself out from under—and discovering how to evaluate—the flood of​ facts and ​ statistics that inundates him.
Do not be dismayed. ​
In the first instance, you are reading for general information, to familiarize yourself with the field.
You will wish to know the health of​ the economy, the specific condition of​ various industries, and ​ the activities of​ individual companies. ​
And you will be attempting to relate this news to the fluctuations of​ the market and ​ the performance of​ particular stocks. ​
it​ may seem to be a​ great deal to absorb, but much of​ it​ will be information you normally pick up, anyway. ​
Only now you will be applying it​ for its special relevance to your new interest in investment.
Today you can use share trading software for shares and ​ Forex software that can help you predict future currency prices to help you trade more safely.




You Might Also Like:




No comments:

Powered by Blogger.