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π± Stock trading: what affects the price?β
π Have you decided on a deal with stocks? Fine! But analyzing the stock market is more difficult than the Foreign Exchange Market. Let us remind you what and how it "puts pressure" on the stock price so that you can make the right decision in any situation.
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Hundreds of factors affect the stock return on investment: from the state of the global economy and the political background to the internal state of a particular company and technical speculation. Experienced traders use the informal rule "30-30-40": 30% of price dynamics depend on global reasons, 30% - on the state of the industry, and 40% of factors are "generated" by the company itself. Then we go according to the usual scheme.
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Fundamental factors.
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The trader must monitor and consider:β’ Global economic trends and the current phase of the market (growth/decline, stability, or crisis);
β’ World stock indices reflecting the dynamics of financial and industrial flows;
β’ The situation in the industry - development outlooks, government or big capital interference, logistics, force majeure;
β’ Dependence of a particular company on raw materials, energy resources, technologies - for example, problems with the supply of iron ore raw materials can bring down the shares of metallurgical companies;
β’ The opinion of analysts about the current position of a particular company on the stock exchange.
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Where to get and how to analyze such information - we will tell you later. In the next post, we will talk about the technical factors that affect the stock price.
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Profits to yβall!