Australian (ASX) Stock Market Forum

Risk Management for Stocks

Joined
Jun 5, 2019
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I like to hold positions overnight, I need to know what causes large moves in stocks, I have traded futures/fx just no stocks. Normally I just look at the economic calendar to see if there are any big releases that move the market. For individual stocks, what info do I need to look out for?
 

Zaxon

The voice of reason
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I need to know what causes large moves in stocks
So many things: Donald trump tweets the word "tariff". A GDP or employment figure is released that is different from what was expected. These types of things are market level risks. But your shares can be dramatically affected by things which seem entirely irrelevant to your individual company.

As to the share itself, failing to meet earnings. Actually meeting earnings, but not surprising on the upside - weird, but it happens. A harmless sounding ASX query letter sent to a company, can cause the price to drop sharply.

Really, there's about 999 things that can cause stocks to sharply change in price.
 

tech/a

No Ordinary Duck
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Oct 14, 2004
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Follow momentum.

While outliers occur they are rare.
Spreading your trading from stock
To Futures e minis commodities
Will go a long way to mitigation
Of overall risk
 
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