(16) No Reasons For Movements
It is one of the basic rules for investing money in stock markets. You should never look for reasons behind for any stock or market as a whole for moving in a particular direction.
Since, markets are largely affected by speculation of investors so don’t waste your time for finding the reasons for market movements. Winning investors are always looking for direction & duration of a market trend.
(17) Markets Trades Ahead Of Fundamentals
It is one of the significant rules for investing money in equities. Equities are known to trade six months to one year ahead of news or supportive fundamentals.
If you are waiting to invest till the total picture of fundamentals of an equity is clear, it will be too late. You should be ready to make positions before the largest crowd move takes place.
Market will show mostly positive reactions for a good or bad news in a bull market. Similarly, market reaction will be mostly negative for a good or bad news in a bear market.
- Stock Market Rules: Shutterstock