What are market participants looking for in a stock ?

T

traderwald

Hi all,

What are most market participants looking for in a stock ? What is the reason they are looking to buy a stock ?


Is it because they think the price would go up ?

Or

Is it because the stock quality would go up - as in it would give more dividends from the more profit it makes ?

One would think the above two are linked. However, the questions are they always linked ?

edit:

What leads to price increase - is it merely the assumption that price would increase ? or is it inherent value of the stock that the market reflects in its price that is traded for ?

In other words, does the inherent quality and quantitative value of profit (not from stock price increase but from dividends etc.) that determines the price of the stock in the market ?

Or is it merely on a general assumption that it is a good stock and for what ever reason, the price of stock will go up - that determines the price of the stock in the market
 
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it's the same reason you are looking in a stock.

but for the next few years you should buy with your eyes shut, because there is nothing else to buy and the money will keep getting printed.
 
When you go shopping at grocery store and not made a list. What are you going to buy, how are you going to decide of the brand, calories, fat? what? Most people rely on past experiences of buying product.

So from experiences, I know what to buy/sell short stocks, but first thing first, risk management, when is perfect time to buy, when does it show good time right now and yet in the past you need to look elsewhere. Where do you get out if going wrong way and by how much?

You could go fundamentals and you will need a book on the financials, you can use charts and find long term tern and entry on retracements.
 
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