The Blog is for a community of people to exchange idea's and seek advice. I've met several of you and I have to say their are some great people out their who have become tired of the "experts" paraded on TV who make a recommendation and then when it's wrong ignore it. Those of you who have been following me n the past know that I say when I've made a mistake, book my loss and move on. To me that's the ultimate in credibility.
If you take a look at the top of the site it's called "Taking Control of your portfolio". "A Blog created for the Individual Investor to help navigate through the rough and difficult world of investing. Topics covered will be Fundamentals, Technical Analysis, Political ramifications and Market Sentiment. Past experience's have shown that not one factor alone can give you all the information that is needed to navigate through the decision making process of buy, sell or hold. Should you need help on a individual basis just send me a email." Marc Roth
Stocks move up and down based on a variety of a factors which is why I look at several. Fundamentals, Techinical Analysis (Charts), Politics (Worldwide news) and Sentiment. Sentiment is the toughest of them all. That's why CNBC has become so important since it gives you insight in to what people on the trading floor and you the investor are feeling about a stock or the market as a whole.
Stocks move up and down based first on the Fundamenatal (Financials) picture of that company and the view looking forward. Technicals provide guides to entry and exit prices. Politics affect the overall market, companies and industry, think Toyota. Sentiment shows direction, perceptions and intent. Perceptions many times become reality. That's why it's so important and takes the most time to learn.
If you're going to handle your portfolio alone with no advice then you need to study. Like anything else it's a matter of what you put into something. Again, you won't be right all the time. The idea is to gather as much information as possible to give yourself the best chance of being right. All that matters is profits. That is why you invest and how I get paid too.
If I'm running your portfolio all you want is for me to make you money whether it's trading or a long term portfolio. That's the way it should be. You have to hold yourself to the same account.
Lisa and whoever seeks knowledge take a look at these periodicals. If you decide you want to buy and read them then that's fine. Either way if you start to look at some of the subject matter, Google it and then read what it means then you will start to learn. Many of you are very smart just not educated in the ways of investing. Most just say I like this stock or product buy and it and forget about it. Not smart and a good way to lose money which is why so many become frustrated.
As always you can ask me questions. You won't understand all the material but if you get gain some knowledge it will help. I try to learn one new thing every day. I never know when it will come in handy.
Thanks for the great question Lisa! Spread the word about the site and keep the questions coming.
Marc Roth
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8 comments:
Ok Marc,
Now You are sounding like a politician!!!! I ask a question and you danced around it very well and basically told me to read a magazine!! You still did not answer my question. Thanks...Lisa
Lisa I did answer your question.
"Stocks move up and down based on a variety of a factors which is why I look at several. Fundamentals, Techinical Analysis (Charts), Politics (Worldwide news) and Sentiment. Sentiment is the toughest of them all. That's why CNBC has become so important since it gives you insight in to what people on the trading floor and you the investor are feeling about a stock or the market as a whole."
Did you read this?
If you have follow up questions about these statements then go ahead and ask away.
The rest of the answer is not to be "Political". You're new at investing, right. I'm trying to impart on you and other new investors some idea's about how to learn why stock go up and down. That takes work and study. The periodicals and/or Googling the subject matter will teach you the basics.
You can't drive without a steering wheel, an engine and tires. Same thing applies to Investing.
Perhaps I'm missing what your asking then. I answered specifically what makes stocks go up and down.
Thanks again,
Marc Roth
Lisa this was your question to me.
"It would seem to me if someone sells there is a buyer and if someone buys there is a seller So what makes the price go up or down?????? It just make no sense to me."
I answered it as best I can based on my experience and beliefs. If you need more information feel free to ask.
Thanks again,
Marc Roth
never mind I guess You don't know either. Thanks for your time
Lisa I answered what you asked. Now if you have a specific question about what makes a stock go up or down go right ahead and ask. At the end of the day it's sellers versus buyers. More buyers and the stock goes up. More sellers than buyers and it goes down. Simple supply and demand.
I gave you an indepth repsonse as to what makes up the price per share (PPS) of a stock.
The purpose it to help you not confuse you. What are you confused about?
Thanks,
Marc Roth
I think she is looking for the supply and demand type of answer.
Thanks Craig. I can't be sure what exactly Lisa is looking for here. I gave her a very concise answer.
The stocks are run in the case of NYSE issues by Floor Specialists. They don't set price but line up buyers and sellers. If that's what she asking then that's her answer. It's not as if I don't know she seems a bit confused on what she is looking for though.
She asked what makes them go up and down. That is simply supply and demand. Buyers vs. Sellers like anything else in life.
Thanks for you help Craig.
Marc Roth
Lisa, let's try another approach. Marc is correct in his answer; however, to make it easier to understand think of an article of clothing you have seen on TV and like. You go to your favorite store to buy it and discover a couple of things right away. First, the price is higher than what you had in mind but not a big deal for you. Secondly, the store does not have your size. Why? Seems others in your size range got there before you and bought out the store's supply; i.e., the demand was high. They have re-ordered and should have more in a couple of days. You return and discover the price has gone up. When you ask why, you are told there is a limited supply nationwide and the store has been allocated a certain number. Now, you know the demand is higher than you originally thought.
You buy at the higher price because you like the article of clothing. The next day at the office while telling your cohorts about the wonderful article of clothing, someone asks if you would sell it to them as they wear the same size. You see an opportunity to make some money and sell it for a slight profit over what you paid.
They wear it for some time and decdie to get rid of it by selling it at a used clothing store. Now, the price is lower than what you paid and certainly lower than what they paid you. The demand is low for the product as it is now considered used and there are other similar articles available at the used clothing store. There is an over supply of these articles. In the case of the stock market, this corresponds to be being over bought and the price drops.
Hopes this helps.
Sagezeke
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