You need to find out as much as possible what is behind a steep price rise or drop. Sometimes such movements are totally bewildering, unexplicable.
But often they are triggered by announcements or strategic and economic conditions.
Look up broker websites like www.egoli.com.au run by Shaw stockbrocking, which publish company information.
Join an online broking firm such as Commsec, make a watchlist and keep an eye on the announcements which are posted alongside the stocks you are monitoring.
You have to soak up, like a greedy sponge, all the information daily, online, in newspapers, everywhere.
And be discerning enough to know what is hype....trying to talk up/down share prices with nothing but hot air.... and what is material information.
