Question: Stock help!! (brand new to trading)?
I really have little knowledge of what makes Stocks rise and fall. I am currently invested in MCD (McDonalds) If someone has time to checkout the stocks recent activity and let me kn ow what they think about it I would greatly appreciate it.
I have been doing some research but I really just need to learn more about the market before I can break down the analysis. If you have some simple feed back on MCD's growth and what you think will happen over the course of this week please let me know.
Answer:
I started my blog this week for stock trading, I will be posting my stock setups for people to use.
It's more of technical faster trade setups not based on fundamentals like the companies growth rate but its faster profits. But if you are interested in doing intra-day trading you should follow my setups :)
But this is the MCD information
http://finance.yahoo.com/q?s=MCD
It's generally a more stronger stock, it will probably continue going up gradually
There can be a lot of reasons why prices fall and rise. If it's a dividend paying stock then sometimes the earnings announcement will affect the price ( if there's an increase in earnings, the price will most likely go up, the more they make people money, the more valuable the stock is ).
General news will affect the price also, the direction that the company is going, what they're doing with their restaurants, etc. maybe they announce that they will be implementing a new way of doing business, or maybe they're enhancing some of their services, so on and so forth.
Supply and demand, if there a lot of buyers placing orders for this stock then the price will go up, the sellers want the best price for it and so if there are much more buyers than there are sellers, the sellers will either retain what stock they have and wait for someone to come along and pay what they're asking or they might just sell it as soon as there's a little increase. In either case, this can result in a buying frenzy that merely occurs because of people's excitement. As they buy, they see the price rising, so they buy more, and then they do it again. This behaviour feeds the frenzy and only stops until buyers realize they have paid too much for their stock-- or sellers who have waited-- and will start selling, thus the price continues to fall as there is a surplus of this stock and is not in demand.
There are other ways that could affect the price, but these are some of the more basic reasons. Just a side note, if anyone answers your question as to what it will do in the next week, don't think that they're right, this is what is known as "speculative investing" the basic principle of which is to try and guess what the stock market is going to do and then buy and sell stocks accordingly. Don't follow this approach, you'll only succeed in making your broker rich.
One of the most renowned investors would get this question, "What is the stock market going to do?" And his answer? "It will fluctuate." Benjamin Graham, an investor who wrote a book and Warren Buffet ( probably one of the richest men in world who gathered his wealth by investing ) has said that this book is "By Far The Best Book On Investing Ever Written" the title of this book is "The Intelligent Investor" and Graham says that you should only buy stock that you are comfortable with not knowing the daily prices.