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when is the time to buy and sell stocks cuase i see the red arrow pointing up and a some stocks are red arrows going down so what is the best time to sell adn also i heard some stock talk like buy to cover or sell short what does that mean

2006-11-20 10:37:36 · 3 answers · asked by Anonymous in Business & Finance Investing

3 answers

There are various ways in deciding whether to buy or sell a stock. The method you were describing in your question is called technical analysis. It is a method used by looking at trends, buying/selling timing, and momentum. Usually, when there are up and down arrows, this connotes a change in trend/direction of the stock. Of course, this is historical and cannot be a sure-fire way to determine the future direction of the stock. I believe technical analysis is for people who do not understand the equity capital markets very much, and thus, rely on trends and momentums instead.

One method used by real equity players is fundamental analysis. This is based on valuations and growth prospects of a specific company. It follows the basic belief: buy low and sell high. You buy stocks when you deem them undervalued and then you sell them if they are overvalued. The most basic way to do fundamental analysis is to do a discounted cash flow on the company and see if its stock price merits its future financials.

To answer your last question, when people short sell, it means that they sell a stock which they do not own. In this case, since they do not own the stock, they should essentially buy it to cover their sale. This technique is done when investors believe that a stock is going down. You sell it at a high price (essentially borrowing a stock ownership) and then buy at a low price (essentially paying back what you initially borrowed).

2006-11-20 11:05:25 · answer #1 · answered by J 4 · 0 0

Okay your the money man. Forget money. Cash market
in itself will run smoothly. You need the scheduel part of this
question and must make a serious committment. One do
the honest thing, write a report of all holdings. Full value.
Say you have tentative award of JEDI directory, sells for 10,000
and could be worth 10 million. That is the key server. Servers
outnumber customers, and that is how your arrows go up. You
are holding Yahoo, Guild, ABC, whatever you like, and there is
the criterium. You must want to sell the stock and get the earn
signs up for your clients. Let look now, does Yahoo have
100 million in daily servers? To me brokers provide the highest
yield of all, fareness. You can work with this lately tip, on the
3rd saturday all stocks have been specified. Showing that the
gains department has demanded the full price. Buying for
clients is good if volume is 1000000 a year, on monday last
week, tuesday previous week, maybe those days on strong
reports. If volume is 20 million a year the day previous.

2006-11-20 13:50:23 · answer #2 · answered by mtvtoni 6 · 0 0

Please learn something about investing and stock market before venturing out to buy/sell.

2006-11-24 06:37:58 · answer #3 · answered by StraightDrive 6 · 0 1

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