Trade investor checking the share market in Australia today

When looking at the state of the stock market and ASX pricing it can seem a little daunting to say the least. With so many changes, rules, regulations, and common tropes that are natural to stockbrokers and those involved in the industry, it’s fair to say that an average investor will sometimes look at the trading day with a real sense of confusion. Even something as simple as Coles share prices can lend itself to the confusion, even being one of the larger companies that allow investment.

While every share market in Australia today trades at different rates and volumes, there’s a few rules of thumb to consider when observing the rates and information regarding the stock market. So today we’re going to help alleviate the common confusions, and as an example, we’ll stick with Coles share prices to make the process a little more grounded in reality in lieu of spouting random rhetoric.

So, without further ado, here are the four main factors to consider when observing Coles share prices, or indeed any stock market index.

1.   News Has A Massive Impact

News has more of an impact than you may believe in the changes to Coles share prices, so a dutiful investor will likely keep one eye on the news at all times. This is, of course, easier said than done. There is no shortage of news stories and articles coming out on any given day over a litany of sources and websites, most of the time a majority of these stories will have little to no impact on your specific market.

A story about a puppy being rescued on the Murray Darling will likely not impact Coles share prices in any meaningful way. However, seeing an article about the closing down of certain Woolworths locations for instance will invariably affect the Coles share prices. It becomes about common sense and correlative thinking in many respects. 

2.   Traditional Seasonal Fluctuations

There will be certain times of the year where the market will be dictated by seasonality. This is an inevitability for any business across the various industries. When observing Coles share prices or indeed any stock market indexes, it’s vital to garner a certain understanding as to the fluctuations that will occur naturally over the course of any given year or season. For instance with Coles share prices, it’s easy to consider the notion that holiday times in the year will see an uptick in value on the market due to the increased natural volume of shopping being done at the stores and their subsidiaries.

Again this takes time to wrap your head around, but a little research on the market trends and common seasonal ticks – you’ll be able to determine when a normal fluctuation occurs or if there’s something to observe.

3.   Room For Potential Growth?

Coles share prices can also be directly affected by the potential growth or downsizing of the business at large. Especially true for the larger conglomerate companies like supermarkets that dominate the market and are spread far and wide across the country. The tendency for opening and expansion typically indicates an increase for Coles share prices. Observing the company reports and keeping an eye on the trends of new stores is a wise move.

4.   Pandemic Related Additions

Sadly, the pandemic will have ripples for many years to come, invariably this will impact the stock market for better or worse. In the case of Coles share prices it is a silver lining for those looking to invest. As supermarkets were some of the least affected businesses in the lockdown and subsequent opening months. It’s wise to keep a steady eye on the pandemic-related activities and invest accordingly. For any other stocks, well, it all depends on the business at large, keep a steady hand and try not to go overboard.

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