@voPAtrader's Threads
Every now n then, some traders/friends keep asking... X co. has bad news, shud I Short? Y co.'s no.s r gud, shud I Buy?
My ans wud b, if Good news mean price WILL rise & bad news mean Fall, ten isn't tat sure way of making money?
It doesn't work tat way. Let me elaborate...
1/n
My ans wud b, if Good news mean price WILL rise & bad news mean Fall, ten isn't tat sure way of making money?
It doesn't work tat way. Let me elaborate...
1/n
Case 1. Sometimes, Price has factored in upcoming News/ Event. (EMH)
Why this happens?
Smart money/ Promoters/ Politicians hv faster access to information. They create positions well before news is knowns to Panwallahs... n that time biggies cover positions, trapping retail. 2/n
Why this happens?
Smart money/ Promoters/ Politicians hv faster access to information. They create positions well before news is knowns to Panwallahs... n that time biggies cover positions, trapping retail. 2/n
E.g 1
Maruti declared July sales no.s on 1st Aug. Sales drop was massive 36%. Still, price made bottom on 31July itself & price rose since then.
Why?
Biggies anticipating weak no.s were Short in Jul. When actual no.s came, they covered.
(PFA chart.)
3/n
Maruti declared July sales no.s on 1st Aug. Sales drop was massive 36%. Still, price made bottom on 31July itself & price rose since then.
Why?
Biggies anticipating weak no.s were Short in Jul. When actual no.s came, they covered.
(PFA chart.)
3/n
