Beginner investing help?

merlin06 · 26 February 2016

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?

AlterEgo · 26 February 2016

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.

Vergel · 28 February 2016

merlin06 said:
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?

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.

Beginner investing help?

merlin06

merlin06

AlterEgo

Vergel

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