What makes a stock price drop after hours, and how do you predict a drop in price before the market opens?
Answers: Usually what makes a stock price drop after hours is some kind of news - earnings report, CFO resigns, an analyst downgrades the stock, news about the economy, etc. It doesn't have to be news specifically about that company. A competitor or even a customer reporting poor earnings can cause a drop because it might mean that there's a decline in the whole industry that will affect this stock as well. Or if the company is a big user of something like copper and the workers at a copper mine go on strike, that can cause the stock to drop due to fears that there won't be enough copper to run their business. Sometimes there can be drops just based on a change in investor sentiment even if there's no news.
It's not easy to predict exactly what the stock price is going to do, but looking at the "after-hours" trades (which can occur after the market closes or early in the morning before it opens) can sometimes be a guide. After-hours changes are sometimes more extreme though. For stocks that trade on European markets, it's also possible to see how they're trading there to get an idea of what they'll do when the US market opens.
stock market is for long term investor. now is the time to fish from the bottom.
If do intra-day trade then you should worry about drop. You should have experience in technical analysis. just it cannot be explained in this column. I can give you some examples; (1) If there is heavy delivery (more than 10 days average) that stock will fall on bearish trend. (2) If a particular stock open interest coupled with delivery is systematically increasing we should watch price movement and it is likely that particular stock is getting momentum, which may give higher return. All are very risky. There are some professionals who give you software with technical analysis.
My advice is to choose long term and not short term.
best of luck
Stock prices go up or down after hours for the exact same reason they do during regular hours.....
(it's really that simple)
Are we again, the small investors, the victims of another Black Monday resembling the one we have October 19th 1987?
Or is this past Monday January 2, 2008 worse because of the bursting of an inflated housing marketplace pumped up by irresponsible subprime lenders( including the banks & several wallstreet firms in the nouns business) and their pyramid schemes!see---> http://en.wikipedia.org/wiki/Black_Monda...
Answers: Is it the lenders or the borrowers who are to blame?
My sandbank wanted to present me a bigger mortgage than I would even lend myself. So I made a point of buying a house that was inwardly our means.
My wife works within a bank and have seen the sheer number of mortgages which save getting consolidated with personal debt. A lot of race deserve the consequences of living beyond their means.
Wait a minute; you are comparing a 20% soon drop to a 1% one day drop? Am I missing something? There is no comparison; if you have experienced 1987 crash you would know that.
Second point: should you have be buying or selling the day after the crash within 1987? The market stabilized and moved sophisticated, take a look at the chart. The average investor be parallelized by fear and probably sold everything, and surrounded by turn missed the rebound.
On a single light of day basis 1987 be 20 times worse, to answer your question.
Edit: Who care about existing or inflation adjusted dollars, I don't, surrounded by investing it is all roughly precentage gain or loss, period. It would own felt resembling you lost a lot more surrounded by 1987.
Banks, barrowers to barrowed too much, and the slimey independant mortgage brokers who screwed people over are adjectives to blame. Why should you not be affected by the up and downs contained by the economy as an investor? As an investor you benifit from others well brought-up decissions, and lose from others bad decision. Companies who make smart decision make you money, the ones who breed you bad decissions lose you money, to be exact how the stock market works, you hold to take the dutiful with the doomed to failure, that is the risk you bring as an investor. If things are so suspicious and everyone is out to get you, don't invest, not a soul will "screw" you over then.
Can I swot up online share trading ??
Is there is any website or software available free . friendly source. where i can swot online share trading. I am a BBA but i am nil in this share souk. Can any one let me know this.Answers: For online reading I would suggest you to hold a look at the following websites
http://money.rediff.com/money/jsp/market...
http://www.moneycontrol.com
http://www.chittorgarh.com
http://www.rupya.com
http://www.valueresearchonline.com (For Mutual Fund Info).
For monitoring stock prices, visit the following links
http://in.finance.yahoo.com
http://www.bseindia.com
http://www.nseindia.com
http://www.moneycontrol.com
I would suggest that you start watching CNBC TV 18, NDTV Profit, CNBC Awaaz and Zee Business News Channels. These channel cover the stock market contained by great detail and some of the programs give honest information on companies and even provide tips on which shares to buy for.
Moreover since you are a beginner, I would suggest you to start next to investments in Mutual Funds and IPOs until that time moving over to secondary marketplace.
Usually if the information is free, it's probably just ample to get you to buy their product or service .
A word of warning: Stock trading is a very risky business and
you could loose seriously of money before you capture any good at it.
In my first year of trading I lost nearly $17,000
up to that time I started to turn it around.
You will need at lowest $30,000 in expendable brass
to open a trading side. Just make sure you gain
a direct access account (stay away from amari-trade,
e-trade, etc... Their commissions will wipe out your business
A DAT or Direct Access Trading account is your best bet
because at hand is no delay within making a trade. and their commissions are less than partially of what the retail brokers will charge.
I use and recommend rush-trade.
Here is a search relationship you can use to find some
good information on trading
http://cbtopsites.com/search/neopoe/dayt...
righteous luck
Trading online is not something different from trading with a broker. Only difference is that the information are placed online. So I think you should try to cram trading strategies for getting good profit instead of erudition online trading.