What happens if stock goes up high one day and then drops right away?

[Lens]

If the stocks goes up and down immediately you need not bother yourself on this. All you need do is to not panic, you could still make money by holding the stocks for a while. You could copy the trading strategies of expert in the field or you seek advice on the present trend of the stocks.

 

[btaliat]

Money market which involves stock, forex and even crypto trading are known to be volatile in nature. It goes and comes down anytime it wishes.

 

[Ub40]

Though it is not really a good thing for one to invest in stock and then suddenly the value went down. Of course those who invested will lose money. But it is also another person's opportunity to invest now that the stock has fallen so as to make profits when it rises again. But I think one should be aware of all this change possibility and how to manage them before going into stock trading. That is just my opinion.

 

[nimzy]

Well it's possible to have experience of such raise and fall in the value or the operation of stock it's quite necessary that things will definitely raise when there is high demand and drop down when less demand is experienced.

 

[Senator]

What happens in this scenario is what would have been obtainable in the other forms of trading if a thing like this happens there too. Depending on the direction you've entered to trade, you might lose or profit from it massively

 

[Setho]

This is a very normal experience in the stock market and that is why it is advisable I should have good knowledge on the risk management whenever you are trading.

 

[Ceeny007]

It is a volatile market,and it is subject to the forces if demand and supply do yes it is very possible for stocks to rise and also fall

 

[Kelly5]

This is simple trading. You enter wrongly, you get burned. You enter rightly, you get a pay check. If the market suddenly goes up and you're already in the market that section, it might affect you in losing your money from that sudden drop depending on the drop intensity

 

[Trexxxy]

I can't say for sure. But I'm sure there would be instances like that. Also I don't think stick prices increases rapidly and drops down in the same manner the same day. I'm not sure it works like that.

 

[HayKay]

Of course stocks have those volatility tendencies. Some terminologies about the bull and bearish runs in cryptocurrency originated from the stock market and that way you understand why the stock market is so volatile. Same way news and other happenings affect the cryptocurrency market, they do affect the stock market too

 

[Heatman]

Whenever your stock goes high it only means one thing and which is that you are making profit from your investment and once it drop-down, it means that you are losing money from your investment; it is that simple.

 

[Senator]

What will have happened if that stock rose that high and suddenly drops greatly is that a lot of people would have lost a great deal of their investment depending on when they entered that trade call

 

[Kubiat-Abasi]

Decline in asset or stock value is tentative but it's not always drastic. It would fall gradually and not just in a single day. If it falls then the investors will have to make use of emergency or contingency plans or face the consequences.

 

[Setho]

This is normally regarded as a pump and dump in business and stock trading and it is normal for people who have high influence in the market to buy so many shares and then sell them at once.

 

[Kelly5]

This is a very bad thing for the stock Market if such kind of occurrence should take place. It will be very divastating for a whole lot of traders as there is bound to be a lot losses for so many traders at that moment

 

[07Trinity]

We call that a V drop, though it barely happens in the stock market,but if it happens it as to do with the news or any major events.

 

[Justin]

If stocks goes high in one day and just the other day, it goes down, this indicates that there is a lot of market manipulation or inside trading. Stock market can be easily manipulated by whales.

 

[Bookwormlux]

In a situation like this, you ought to control yourself and make sure you exercise patience as the price would definitely go up again.

 

[Toyoabasi]

Has stock ever gone up a ton and then just dropped like crazy? I haven't done much work in the stock market, but I always wondered what would happened if the stock rose fast and went down just as fast.

I think such a thing would happen in the stock business too. It happens in Cryptos a lot.
If that happens, it would be so frustrating to those in the business. If one makes a wrong move at such a time, a lot can be lost.

 

[Kaffyfolla]

There are investors who place trades with a broker to sell a stock at a perceived high price with the expectation that it'll decline. These are called short-selling trades. If the stock price falls, the short seller profits by buying the stock at the lower price–closing out the trade. The net difference between the sale and buy prices is settled with the broker. Although short-sellers are profiting from a declining price, they're not taking your money when you lose on a stock sale. Instead, they're doing independent transactions with the market and have just as much of a chance to lose or be wrong on their trade as investors who own the stock