The mind boggling question now is "You wanted to buy this company at a target price of $0.90 and today's at $1. Tomorrow the moment the market open, its at $0.90 cents, a total 10% drop in share price, could be due to weak market sentiments or due to bad fundamental results released.
Would you buy it now?"
Who are you in the stock market?
***Always remember that when a transaction is completed there is buyer/buyers and seller/sellers of different views. At the time of transction, who is right or who is wrong is still uncertain?
1. A disciplined Trader?
2. A confident Investor?
3. An emotional Trader or Investor?
Who will not dare to buy after seeing 10% drop in share price when market open?
A disciplined Trader?
He/she will either long or short it.
A confident Investor?
He/she will buy as the margin of safety is even better before price drop.
An emotional Trader or Investor?
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