I hear it on CNBC all the time but I am not really clear on the meaning. Thanks for your help.
2006-09-14 11:24:26 · 3 answers · asked by bluegenieinlv 1 in Business & Finance ➔ Investing
That term applies to when a stock has experienced a great deal of selling pressure and the share price has become out of line with the true value of the company. It is then said that the stock is "oversold" and should "bounce" meaning move up in price, usually by a percentage of what was lost in the previous sessions.
The website http://www.champs-and-chumps.com/ features daily profiles of many oversold stocks. I get many ideas for bounce trades from that site.
The key to this type of trading is to be patient and not rush into buying. I also like to build positions in three different blocks in order to cost average.
Best of luck with your trading.
2006-09-14 11:32:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
not too sure, but I went to the local grocery store the other day and bought a 120 sheet bounce fabric softener for 7.99... I'd tell ya that's what I call a over sold bounce. LoL
2006-09-14 18:32:11 · answer #2 · answered by ♥ღαмαиdα♥ღ 7 · 0⤊ 0⤋
try
"investopedia.com" and "investorwords.com"
pretty good reference spots
2006-09-14 18:31:41 · answer #3 · answered by Gemelli2 5 · 0⤊ 0⤋