Everyone has stock market apps these days and is well versed with the happenings of the market in addition to latest trends, price updates and so on. However, people fail to recognize the importance of certain external factors when it comes to impacting stock prices. Some factors can literally hold the market to ransom and bleed both investors and companies dry in due course. You should definitely learn more about these external elements that hold considerable sway all across the world. Firstly, company earnings are an important variable that often impacts market performance. Simply investing is not enough; you should be wary of the company, overall financial performance in a particular year or across a sustained period of time before investing in the shares of the same.
Your stock market apps will definitely not give you ample insights with regard to annual or quarterly profits and losses of companies and you should look to rely on external sources for updated information about the performance of big companies listed on the exchange. If companies register lower profit margins, markets automatically collapse on account of falling stock price and rapid selling by shareholders. Energy prices are another external element that influences markets dramatically. Energy demand is on the rise and is one of the very few constants in the global world. Fluctuations in prices and costs can hit the market pretty badly at times. Oil prices also play their part in determining stock prices and market movements. High prices always translate into negative market sentiments and reactions and this is another factor that you should be wary of!
Latest global issues and developments also reflect in developments reported by stock market apps. Global fraud, crime and unrest along with other political developments hinder growth of leading businesses listed on stock exchanges and this plays havoc with prices in turn. Fear experienced by investors is usually the element that most triggers a collapse, sometimes even unnecessary and short lived! Investors are often plagued by certain wrongful news of perceptions and rapidly pull out of large scale holdings and investments in the market. This causes the same effect as mentioned earlier.
