2 ms·
> Yet the stock drops 4%. What gives? Learn to ignore short-term market movements. End of story. Honestly, modern-markets are just nuts short term, there are
by traceroute66 3y ago
> Yet the stock drops 4%. What gives?
Learn to ignore short-term market movements. End of story.
Honestly, modern-markets are just nuts short term, there are so many conflicting parties seeking short-term profits.
On the professional side you've got the hedge funds, the algo traders and people like that. They pretty much trade fully automated, so if their algorithm decided to sell ASML on the news after their text analysis of the RNS or whatever then that's what happens.
Then on the retail side you've got lots of places where you can go punt with leveraged trades (CFDs and spread bets). If you're A-book retail the broker will like-for-like replicate what you're doing on the market. If you're B-book retail (most people !) then your broker will take a position on the market based upon their net view and their appetite for risk.
In addition to the above, the final piece of the puzzle is that moves in "hot" stocks are always amplified due to the sheer volume. Nobody (should !) blink twice if a FAANG drops 4% in a day and its sort of the same thing with ASML.
- somedude895 3y agoI just love when there's a news story about a scandal at some company ending in "Their stock dropped by 1% today."