Novice traders (and investors) usually think that an accurate forecast is all they need to succeed in the markets. You read one, you open a trade, and then you close it. Buy low, sell high, wham-bam – you're rich. That happens only if you're really, really lucky. But let's consider a certain (very probable) trading scenario...
On Friday (Feb. 1), Google reported that its "fourth-quarter revenue increased 51% and net income rose 17%, and top executives said they saw no effect of an economic slowdown." Good news, no argument there. Yet at the open GOOG promptly lost ground and closed Friday's trading down more than 8%. And then on Monday (Feb. 4), it lost some more. Why? We have some ideas...
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