Hey
I have bought some shares a week ago. Since than the share value continuously drop without any explanation or any announcements? what are the reasons for that?
Also, does it mean there are more sellers than buyers of this share?
thanks
I have nexus shares. I bought them because they are about start to come up with some profit with their Longtom gas project. However, their shares drop steadily. I really dont understand that
Hi there mate, Iv done some research on your shares, rest assured that you will probably make a profit on your investment, as the longtom pipe-laying/maintinance has finnished and the pumping will soon commence, you are going to start to see some value increase in your shares.
the recent drop is mainly because of market instability and basically "mis conceptions" in the value of shares.
if you do some research youll find that the ASX has dropped considerably in the past few days and this reflects the market in general, it can have an effect on all shares. Please sit tight and feel confidant that you have made a good choice in your investment, and remember that investments can go up and down, but I would advise that your investment is as sound as a sound investment can be in today's market.
good luck mate, and be sure to keep up with current events in the industry.
I understand that this language is a tad ambiguous. Obviously I feel strongly about the topic and wish to fortify my position but also mean to leave room to back out should something unforeseen arise. Having said that I really do feel that this investment is sound.
edit: Just goes to show, you should really do your own research, and language can be misleading.
It is not that your language is ambiguous. It is the fact that it sounds like advice and those are not allowed on this forum by law.
You can post your view about a stock, you can't tell others what to do.
Read the forum posting rules.
What was your reason for buying them?Hey
I have bought some shares a week ago.
The SP was already flat following a significant downtrend for some time.Since than the share value continuously drop without any explanation or any announcements?
As has already been pointed out, there could be any number of reasons, the same number that indicates this SP has been going nowhere positive for some time.what are the reasons for that?
Think about this: for someone to sell shares, someone has to buy them.Also, does it mean there are more sellers than buyers of this share?
What was your reason for buying them?
What do you think, Chaka? Is that possible?I bought the shares because my mate(noob in shares) advised me to do so. I researched for a bit and found that it has a nice potential of going up in value.
Another question, lets say there is a share with no sellers at all, is it still possible to purchase the share?
I bought the shares because my mate(noob in shares) advised me to do so. I researched for a bit and found that it has a nice potential of going up in value.
Another question, lets say there is a share with no sellers at all, is it still possible to purchase the share?
I still dont get the point of restricting it so the buyers buy the shares from the sellers.
And if a company needs more funding, where can they get it from?
I thought they could do it buy selling more shares...
I've been thinking the same. Chaka, it would have been good to educate yourself before actually buying any shares.It may be a good idea to do a little more reading on the basics of how the share market works....the ASX is a start point for the basics...
http://www.asx.com.au/resources/education/index.htm
(Note: I've not checked the particular share, and certainly don't hold any. This is general advice only).
In general, though, consider: you bought because the company is about to make more money, right? So, you were willing to buy, and you expect the price to go up.
Well, so might lots of people have done, and they've probably been looking at this for months. That means the price might already reflect these expected profits. They've effectively become a bit of a non-issue, and might even be a liability if they're not as high as people were expecting.
That's why a company who posts a big profit can actually see the share price go down: people were expecting more.
So the price might be coming down because they went up too far, or because something has happened to make that expected profit less. Have there been commodity price changes that mean they'll have higer costs or will have to sell their product at a lower price? Do they have a lot of debt, and will rising interest rates impact their profits?
Knowing that a company is going to make lots of money only really helps, from a short term share price point of view, if you know about it before many other people know about it. Otherwise everyone who knows will buy the shares and the price will go up.
By best performer is in an area where I know a bit more than most traders or investors - that is, I knew a product would be more valuable than most people realised, that the company would make a lot more money than expected in the market. I buy the shares and wait for everyone else to find out what I know - and hence watch the price go up.
...but finally, you have to expect wobbles, and it really isn't too terrible if your shares drop a bit after you get them. Check the chart and see how, even in a steady trend up, there will be drops of 5-10%. A solid uptrend will simply keep recovering by more than that. That's why you shouldn't have a stop to close behind an initial buy price: even good trades can fall a bit at first.
A solid, profitable company (if this is one) is probably a good long term investment, regardless of short term movement. If that's what you're after, and what you believe you've got, then more luck to you.
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