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Beginner investing help?

Discussion in 'Beginner's Lounge' started by merlin06, Feb 26, 2016.

  1. merlin06

    merlin06 merlin06

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    I'm very much a novice and even have difficulty finding how to post on a forum.
    I have been day trading on BHP and some small caps.Returns have been good but while waiting for BHP to drop back down again I bought some PRO which, after posting increased revenue and profits, has since dropped 20%! What am I missing or is it just the regular volatility that's gone over the top?
     
  2. AlterEgo

    AlterEgo

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    Are you asking why a stock would drop when profits were up? This happens frequently with many stocks, as the market is expecting an even larger profit result, so are disappointed by the profit result being below their expectation.
     
  3. Vergel

    Vergel

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    Increased in profit doesn't necessarily means increased in value. They could have a declining financial statements to begin with and has huge amount of debt. Volatility is also a huge factor. You probably entered on its highs.
     
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