Share price is going up today, what does that mean?I have spent way too much of my life replying to the silly postings made by the silly people who try to make everybody believe that you must jump out of a company when it's share rpice drops, because they want you to believe that a dropping share price is reflective of a company that is moving closer to insolvency.
So by the ideals of those same posters who beliueve that, does it also mean that the company is now going to become great and amazing and it has more contracts and higher margins and bigger growth, because today the sotck price went up?
NOPE!
In the short term, the stock price has nothing to do with the company and where it is going.
This great jump in price today, or great drop in price tomorrow, really means NOTHING to anybody that is investing.
For the day and week traders that are okay paying brokerage fees and capital gains taxes at every peak and logging losses at every valley, the volatility is good for them. Keep oin mind, they prefer to play with companies that have a long term share growth plan, or else their systems have a much higher failure rate, so they validate the stock.
Please don't put too much into the spike in share price today, just like you shouldn;t put much into the recent drop over the past week. If you did a good job and picked a company that will grow it's brand and value and cash flows at a higher rate over the next few years than others, YOU WIN.
Cheers!