In this project, te assumptions made on marketing strategy will only help in developing the strategy that will be applied. Te difference between the three strategies is the contrarian and momentum strategies rely much on the information got after technically reviewing the nature and performance of the stock markets, wile market strategy rely much on the stock market’s history. O a different scale, i an investor translates the results of his or her investment as the characteristics of investment results instead of the stock market behavior, te expectation is users of marketing investment strategy will not realize the impacts of significant anomalies or any type of transformation in the nature of trade.
Te explanation to the above assumption is market strategies are generally resistant to these anomalies compared other types in the finance literature. Crrently, tends in investment markets in the selected companies show that Twitter has reported a significant growth in stocks by 9% while the other two-Facebook and Google Inc. -grew in stocks by 4% and -2% respectively. Te strategy that I have chosen is closely to momentum strategy.
Is policy is to purchase the highly priced stock with the best trend in stock performance according to the available history. Terefore Twitter Inc. ws our first choice. Afew years ago, mmentum strategy in investment analysis worked well for the company of my choice. Smilar to other stocks in the market, tis strategy has been applied. Tis refers to a situation where a person purchases a stock while focusing on selling it at a higher value than the buying price. B using the strategy I selected, was a weekly percentage change of 15%.
Te strategy also indicated that stock performance tend to follow the direction of current market price. Tat is, apositive movement (rise) in stock is linked to the assumption that the market is performing well (Lori & Kimpton1998). Te major belief is a stock that has been reporting good performance from the past will perform even better in future. Tis assumption is very different from the for Twitter’s market share. Titter’s market share has defied this norm since by applying the momentum strategy tere are signs of surprising changes in its position in the stock market.
Te current features of the application have been present in the market for a period of not more than...
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