Partially correct. But value investing as per Buffett & Woodford will always work. A good sound company making increasing profits and paying bigger dividends over time will invariably increase. There may be big blips on the way because of what you say, however. Tesco does not, at the moment, fit these criteria. But they may well do so sooner rather than later.
In answer to your question, is that markets are driven by traders who do math and buy and sell on math calculation and ratios of share movements. Ever notice that the news follows after a share goes up or down?.News happens and the news people never tell you that therefore the shares will go up or down.A companies share price goes up and they then look around for a reason why it has gone up.Even vague reasons seem to suffice.If a share goes down and there is absolutely no reason that they can find for it.They put it down to "profit taking". Basically,movements are calculated and scenarios are arrived at.If a share breaks a resistance point action is taken. One thing i see on here is people suggesting using a gut reaction,or using ones instinct.Thats ok to a point,but charts can be used a a guide. Would you travel across a desert without a map?.Of course not,so why not use charts?.Do your own research,look at the price movements,do calculations with a calculator,and see if you can see any pattern to the chart movements. Most systems have been well documented with loads of books published on the subject.But i suggest that you do the research yourself.A lot of people fall into the trap of reading all the comments in newspapers etc,and then declare that they have analysed the subject.WRONG!!!!,All they have actually have done is ANALYSED SOMEBODY ELSE'S ANALYSIS. There is no substitute for doing your own research and study,then you will be surprised at the amount of nonsense that you hear spouted out, whether it be from politicians or so called experts.Only then will you make money.Don't make the same mistake as me and wait for some expert to tell me that Betfair at £8 was a steal.Make your own mind up and then act on it.Obviously as i say do the research first.
Not sure - just received an email last night about Tesco and proposed changes to workers rights - read it, agreed so signed it via Facebook... (probably because I had signed 1-2 petitions in the past via the change.org website)
New2trade,my wife and i cancelled our saye and bought the shares with the money and they dropped from about £3.23 and now£1.60 we are trapped,like Bruce said the company hopefully should turn but slowly we were always told dont tie money in shares if you cant leave it 10 years or more
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