The use of market trend as profit strategy

June 21, 2009 | Posted by mybj

In stock trading, the trend or price movement is important as fundamentals of the market or companies to discerning investor in any market situation.Good investment decision in stock trading that will be profitable are hinge on the current trend which influences the entry and exit strategies at any given time. A clear understanding of the market trend will help investors to maximize returns and reduce losses .This is because any notable trend in any market of the world is being propelled by a particular factors which might be in favors or against the market Intelligent investors that really understand and know the implication of the up and down market trend in any stock market will accumulate more share at low price knowing that the bearish session would not last forever, more especially when the price earning ratios of the quoted companies were very low. With this low ratios the risk level are also low since the dividend yield of most the companies that are on the floor of Nigeria stock exchange are very high and attractive. Investor should not just look at low the price but also the earnings of the companies. During the market crash this year most or almost all the equities hit their lowest price more especially the banking equities, insurance foot and beverages and the investors that took decisions to buy, made good investment decision. They will sure smile to the bank because of their understanding of trend in stock market. Investors should always watch and enter equities that have good fundamentals which the earning will soon be release to the market. The banking sector boosted the activities on the exchange with impressive result from the industry as volumes and numbers of the transactions have increased, despite the fact that profit are being taken, the sector still command volumes. These suggest those investors are much interested in this market. Gradually confidence has returned to market. More impressive full year and quarterly earnings that are made available to the market will drive the activities the more on the floor hence price movement. Therefore any investor that understands implications or effect of good earnings on the price movement will know when to enter and exit a stock by implementing the market trend profit strategy. The current market price of the stock is too bad for short term trading as the market is still oscillating CLICK HERE TO VOTE FOR THIS SITE

Categories: Uncategorized | Tags: | 1 Comment »

Comments