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Gain from common stock market knowledge

Posted By On 7/24/2008 03:39:00 PM Under
1. Indian stock market for past 5 days was in a state of euphoria and thus gained 15% with in a span of 5 days. These gains have been achieved initially due to UPA winning the vote of confidence i.e. stability in power centre and was further aided by cooling of crude prices and favourable global cues.

2. However people forget in euphoric state that steep climb of market to the tune of 15% in just 5 trading sessions is not good for stock health. Thus here comes common stock market knowledge in picture and this is that knowledge which we have derived from experience.

3. Common stock market knowledge says that such rise is not good for stock market and thus a fall will occur in market as it is like Newton Law of gravity which states that the thing which goes up has to come down and thus market falls on sixth day and people repent. Thus one must learn from common stock market knowledge.

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