If you did not already know, Infosys Limited is a multi-national IT consulting corporation that has been performing very well in the NYSE as of late. In fact, Infosys shares were outperforming former IT sector leader, TCS. But, what does that mean for you, the first time investor? Maybe not much in terms of where you should be allocating your money to enterprise stocks, small cap stocks or penny stocks. However, there is much to be learned from the rise of Infosys and decline of TCS. This post will highlight some important opportunities for learning about investing provided by the Infosys Stock example.
If you were to do a quick Google search, you would be able to pull up information showing the steady climb in performance of Infosys over the past five years. If you were to look even further, you would then see a three year decline prior to that. So what can you or any futures trader learn from this information? The important lesson to be learned from Infosys for a first time investor is to not let the highs and lows of the market cause you to make emotional decisions. You have probably heard, many times I am sure, that the market has highs and lows. What you may not understand is that those highs and lows often last for seemingly long stretches of time. The lesson is – stay the course. If you think it is time to trade, think again.
Why Is Infosys Is Doing Well
Whether you are buying stocks online or just starting your research, one question you should hopefully be asking yourself is “Why is Infosys stock doing so well right now?” Therein lies the second lesson to be learned. If you are interested in becoming a seasoned investor, you must be willing to do the leg work. When a company is doing well, do not just try to buy in right away. Figure out why the company is performing better than its competitors. This includes what it is doing differently and what, if any, improvements it has made to impact performance. The more you know about what makes a corporation perform well, the better you will be able to spot those traits in fledgling companies. Remember to constantly question what factors into performance, both good or bad, and do your research. This will help enable you to make the best possible investing decisions.
Good Performance Means High Prices
One more lesson that you can gain from the rise of Infosys Stock, according to Paulson investment company, is along the lines of the age old wisdom “buy low, sell high.” It is not quite that simple, however. Infosys stock is performing very well right now and shares are selling at prices around twenty dollars apiece. However, as there are long-term ebbs and flows in the market, there are also short-term ebbs and flows as well. If you are passionate about the work Infosys is doing, and you believe current performance is an indicator of future success as well, you may still want to consider buying now. Not right this second of course, but play close attention to their daily performance for a period of time. This will familiarize you with Infosys share prices, allowing you to spot an uncharacteristic low that may provide you the opportunity to buy in. Learn to use the market’s highs and lows to your advantage and you will improve your rates of return.
Recent Infosys Stock Performance
Unfortunately, shares of the Indian IT company took a dip recently. Infosys shares were down over 5%. The company lowered its revenue guidance, which could be a reason for the drop. However, Infosys also reported quarterly earnings that were ahead of expectations, even if only by a penny. So what can a beginner investor learn from this? It is not only earnings that influence the price of Infosys stock or any other holding. Many factors influence share prices. Remember this when you think of the recent drop in Infosys share prices.
Infosys is a company that has had a steady climb in success over the last five years and has recently found itself making headlines for its successful business decisions. Allow yourself to learn from this current NYSE stock. Have patience with your investments, be willing to do your own research, and learn to use the inconsistent market to your benefit. Remember these lessons you have learned from the Infosys stock price and you will be in a better position for success than other first time investors.
Image from http://www.livemint.com/Companies/xNj2S0B4m67n1Hw7p2kgSJ/Infosys-bags-multimillion-euro-deal-from-Deutsche-Bank.html