Good news! Good news! Good news about a particular counter is out everywhere.. newspapers, television.... You name it.... Maybe a large dividend, large project, huge profit... Anything.... Now, the basic instinct that we have is that when good news is out, the counter will sure have demand... When there is demand, the price will rise... So we jump in and grab the share by hook or by crook.. Whatever price also we are willing to pay as long as we get it fast. Then we can always sell at a higher price. This can be called, “Buy on news”. Is this concept true? Well, I would say the chance is 50%. Why do I say so? Let us investigate further....
Never forget that there is a group of people called speculators out there that will turn this logic upside down. They will cause the effect of “Sell on news”. They will snatch up the shares of a particular company before the news even came out. They will somehow get the information far earlier than anyone and they will start buying the shares at the lower price… Once the news is out, they will sell because by then the price would have risen and they take away the profit. Because speculators normally would grab a huge number of shares, so when they sell, they will cause the price to drop significantly.. And by then, everyone would panic and start their panic selling mode.. So the price will dip….
Case study: Stocks like Tebrau and UEMWRLD was rising tremendously before the announcement of the Nusajaya project.. By right, when the news actually came out, the shares should rise, but they took the other way instead….
So, “To buy, or not to buy?” Hehe… This is a tough question… That is why I don’t normally go for speculative stocks… But to know if there is already speculation in, you can tell by looking for clues. If the price of the stocks suddenly rises tremendously with super high volume for no particular reason, both from fundamental or technical point of view, it is a clue that something is fishy. Especially when there are rumours around about the company getting a huge project, etc… Be extra careful.. For those who have a huge taste and tolerance for risks and want to try out these stocks, you need to be very familiar with technical analysis… Make sure you enter early, place your stop loss plan… and FOLLOW it.. Try not to fall into the “last man on the block” syndrome.. That means, don’t be the last to enter or leave the building. Meaning don’t be the one to pay the highest but sell at the lowest price for the stock… Hehe…. These kind of stocks is like air filled balloons, they jet up when the air is released, but once all the air comes out, it makes a fast vertical fall…
Good luck and happy hunting…
1 comment:
Their Standard reply - "You buy, sell or hold at your own risk absolutely."
Then the say "Never blame others for your own action."
I still caution everyone
BEWARE _ BE CAREFUL _ YOU MAY THINK THE INFORMATION HERE IS INFORMATIVE AND CAN MAKE YOU MONEY _ DON'T.
MANY SUCH BLOGS HAVE MADE PEOPLE POORER>
MAXFORCE - AND BURSAMASTER - THE SAME. READ THEIR CALLS IN BURSAMASTER's BLOG.
THEY CALL FOR A BUY AFTER THEY HAVE BOUGHT SO THAT YOU CAN HELP TO PUSH UP THE PRICE FOR THEM> THEY HARDLY EVER TELL YOU WHEN TO SELL UNLESS THEY WANT YOU TO SELL BACK TO THEM AT LOW PRICES > DO YOU KNOW WHY? BECAUSE WHILE YOU ARE BUYING THEY ARE SELLING> AFTER THAT WHEN PRICE COMES DOWN< THEY SAID MARKET CORRECTION-HEALTHY OR "OPERATOR" COLLECTING AND THE PUSH WILL COME SOON>
TYPICAL TRICKS.
SO BE CAREFUL BE WARY OF MAXFORCE
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