Stocks always constantly move up and down in a trend . The motive behind this is to catch the traders on wrong side. Stock markets are designed to cause losses to 90% of the players.
The stock market by its very nature is designed for you to lose money.
The rallies and reactions within any trend ensure this process is at work constantly. It is created automatically. The market behaves this way because it has to! The weak have to perish so that the strong can survive. Professional traders are fully aware of the weaknesses in traders under stress and will capitalise on this at every opportunity.
Just imagine if a stock is following a constant trend , then there wouldn't be any losers ideally. everyone would bet on the trend side right ? so in a market if some one has to win some one has to lose(*not always true). Hence the big fat people also called as professional traders aka syndicates design and move the stocks in a direction majority of people will get caught on wrong side.
A small trader(small by the size of $'s ) will always have majority odds against him.The professional traders are sooo big that they can move the market in whichever way they want irrespective of news , events, economy, other factors. If god has the ability to turn events I consider these guys analogous to gods in stock markets. Hence I would suggest to "follow the professional traders trend". We 're limited by the resources, knowledge, internal news and the best way to survive among these sharks is follow them :)
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