The DOW effect

 source: www.pse.com.ph

Last week was a erratic stock market world.

 source: http://money.cnn.com/data/markets/dow/

For the first part of the week every market in the world are bullish and rally then in the end of the week there was this sudden plunge after the news about bad economic data from the US with the latest story of Goldman Sachs settlement with their case.

And if you have already notice the Philippines Stock Exchange has been trailing the US market specially the Dow. When the Dow is up the PSE is up, when its Dow is down the PSE is down except during second or third day after the Philippine election when Noynoy has the majority votes.

Should we blame the Dow for all our loses or should we take advantage of this indicator? We cannot do anything about the bad economic data from the US but knowing that the PSE trails the reaction of the Dow would be a great tool for us to predict what is to happen in our local stock exchange except if the reaction is further decline which is not good for any investor at all. So always choose stocks of fundamental sound companies and if such stock's prices are down it may be best to buy some to lower your cost on such. And when the stocks rises up again well you now got a lower average cost per share giving you better returns.

The DOW effect

 source: www.pse.com.ph

Last week was a erratic stock market world.

 source: http://money.cnn.com/data/markets/dow/

For the first part of the week every market in the world are bullish and rally then in the end of the week there was this sudden plunge after the news about bad economic data from the US with the latest story of Goldman Sachs settlement with their case.

And if you have already notice the Philippines Stock Exchange has been trailing the US market specially the Dow. When the Dow is up the PSE is up, when its Dow is down the PSE is down except during second or third day after the Philippine election when Noynoy has the majority votes.

Should we blame the Dow for all our loses or should we take advantage of this indicator? We cannot do anything about the bad economic data from the US but knowing that the PSE trails the reaction of the Dow would be a great tool for us to predict what is to happen in our local stock exchange except if the reaction is further decline which is not good for any investor at all. So always choose stocks of fundamental sound companies and if such stock's prices are down it may be best to buy some to lower your cost on such. And when the stocks rises up again well you now got a lower average cost per share giving you better returns.

The DOW effect

 source: www.pse.com.ph

Last week was a erratic stock market world.

 source: http://money.cnn.com/data/markets/dow/

For the first part of the week every market in the world are bullish and rally then in the end of the week there was this sudden plunge after the news about bad economic data from the US with the latest story of Goldman Sachs settlement with their case.

And if you have already notice the Philippines Stock Exchange has been trailing the US market specially the Dow. When the Dow is up the PSE is up, when its Dow is down the PSE is down except during second or third day after the Philippine election when Noynoy has the majority votes.

Should we blame the Dow for all our loses or should we take advantage of this indicator? We cannot do anything about the bad economic data from the US but knowing that the PSE trails the reaction of the Dow would be a great tool for us to predict what is to happen in our local stock exchange except if the reaction is further decline which is not good for any investor at all. So always choose stocks of fundamental sound companies and if such stock's prices are down it may be best to buy some to lower your cost on such. And when the stocks rises up again well you now got a lower average cost per share giving you better returns.

PSE website: Company Stock Information Part 4

Another link in the stock information worth checking is the Chart link.

Again right click on the link and choose open in new tab. You will see three charts but concentrate on the chart on top. This chart shows the company's last price(sometimes term as the closing price) represented by the black line, open represented by the dark blue line, high represented by the red line, and low represented by the light blue line. 

Again you will ask me, "Louis what will I learn here I didn't even passed my Math subject in high school." 

This chart shows you the trend of the stock. If you look closely the X-axis or the one below the chart shows the months and on the Y-axis are the prices. This chart shows when and how much was the price of this particular company's stock price comparing how much was its closing price(which is the basis of next trading days starting price), what was its highest asking price and what was the lowest bid price. It will give you an idea when to buy, that is when it's low and when to sell that is when its high.

This is a very rudimentary form technical analysis. Technical analyst interpret such movement and then predict or we term it time the market so that they know when to buy or sell.  They have this signal like an abrupt jump in price or a steady rise of the price. A successive dip or a successive rise that guides them in there buying and selling activities. But for now lets contend ourselves with the simple analysis. Buy when its low, sell when its high, hold when price is steady, and take profit when there is a steady rise in price.

PSE website: Company Stock Information Part 4

Another link in the stock information worth checking is the Chart link.

Again right click on the link and choose open in new tab. You will see three charts but concentrate on the chart on top. This chart shows the company's last price(sometimes term as the closing price) represented by the black line, open represented by the dark blue line, high represented by the red line, and low represented by the light blue line. 

Again you will ask me, "Louis what will I learn here I didn't even passed my Math subject in high school." 

This chart shows you the trend of the stock. If you look closely the X-axis or the one below the chart shows the months and on the Y-axis are the prices. This chart shows when and how much was the price of this particular company's stock price comparing how much was its closing price(which is the basis of next trading days starting price), what was its highest asking price and what was the lowest bid price. It will give you an idea when to buy, that is when it's low and when to sell that is when its high.

This is a very rudimentary form technical analysis. Technical analyst interpret such movement and then predict or we term it time the market so that they know when to buy or sell.  They have this signal like an abrupt jump in price or a steady rise of the price. A successive dip or a successive rise that guides them in there buying and selling activities. But for now lets contend ourselves with the simple analysis. Buy when its low, sell when its high, hold when price is steady, and take profit when there is a steady rise in price.

PSE website: Company Stock Information Part 4

Another link in the stock information worth checking is the Chart link.

Again right click on the link and choose open in new tab. You will see three charts but concentrate on the chart on top. This chart shows the company's last price(sometimes term as the closing price) represented by the black line, open represented by the dark blue line, high represented by the red line, and low represented by the light blue line. 

Again you will ask me, "Louis what will I learn here I didn't even passed my Math subject in high school." 

This chart shows you the trend of the stock. If you look closely the X-axis or the one below the chart shows the months and on the Y-axis are the prices. This chart shows when and how much was the price of this particular company's stock price comparing how much was its closing price(which is the basis of next trading days starting price), what was its highest asking price and what was the lowest bid price. It will give you an idea when to buy, that is when it's low and when to sell that is when its high.

This is a very rudimentary form technical analysis. Technical analyst interpret such movement and then predict or we term it time the market so that they know when to buy or sell.  They have this signal like an abrupt jump in price or a steady rise of the price. A successive dip or a successive rise that guides them in there buying and selling activities. But for now lets contend ourselves with the simple analysis. Buy when its low, sell when its high, hold when price is steady, and take profit when there is a steady rise in price.