As Investors there are many reasons why we want to invest in a stock. I have listed ten of them below.
1. The price of the stock has fallen due to a series of bad news. It has been dropping for the past eight trading sessions. It cannot keep falling forever, and sooner or later the trend has got to reverse.
2. Price of the stock is now at support level. For the past year the price has gone up and came down to this level five times. The moment it retraces to this level the buying activity returns. The support looks strong and unbreakable. Downside is capped.
3. Both the Chairman and CEO has been buying stocks in the company recently. Insiders know the true value of the company. When they start increasing their stake, it usually means that the stock is under valued and there is potential for ......