Why does sometimes stock price goes down on good news and up on bad news?

When this happens, supply, demand, and trading factors may be the catalyst. Good or bad news about a company often leads to short-term stock price changes and higher short-term volatility. Another possible explanation for a sell-off following good news can be related to noise traders.

Why do some stocks go up without news?

It could simply just be a break through a long term resistance causing technical traders to jump in. It could be an analyst putting out a buy recommendation. If fundamentals have not changed then maybe the technicals have changed. Momentum could have reached an oversold position causing new buyers to enter the market.

Should you buy stock before or after earnings?

Originally Answered: Should you buy a stock before or after earnings? There is no rule. Investors and traders treat different stocks differently. Sometimes, a positive earnings report has no impact on the performance of a particular stock.

What makes stock value go up and down?

If there is a greater number of buyers than sellers (more demand), the buyers bid up the prices of the stocks to entice sellers to sell more. If there are more sellers than buyers, prices go down until they reach a level that entices buyers.

At what percent gain should I sell stock?

You don’t need to hit home runs to win the investing game. Focus on getting base hits. To grow your portfolio substantially, take most gains in the 20\%-25\% range. Though contrary to human nature, the best way to sell a stock is while it’s on the way up, still advancing and looking strong to everyone.

What is the best time of day to buy stocks?

The opening 9:30 a.m. to 10:30 a.m. ET period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

What causes the stock market to go up and down?

Related Questions More Answers Below. The mentality of people changes due to the news and the people starts to buy or sell their stock causing the stock market prices to fluctuate. In this case, the bad news triggers the opportunity for the buyers which causes the stock prices to go up.

Why do stock prices fluctuate when bad news comes?

The mentality of people changes due to the news and the people starts to buy or sell their stock causing the stock market prices to fluctuate. In this case, the bad news triggers the opportunity for the buyers which causes the stock prices to go up.

Is Bad News Bad News Good News for stocks?

Bad news for some stocks is good news for others. For example, news that a hurricane has made landfall may cause a decline in utility stocks, in anticipation of costly emergency responses and repairs. Depending on the severity of the storm, insurance stocks will take a hit on the news.

Why do people buy and sell stocks?

Negative news will normally cause individuals to sell stocks. Bad earnings reports, poor corporate governance, economic and political uncertainty, as well as unexpected, unfortunate occurrences will translate to selling pressure and a decrease in stock price. Positive news will normally cause individuals to buy stocks.

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