Quornes
16-May-19 07:20 PM
@Capri Sun Tzu if you want i'll talk on counting card, ping me on general for that though
and the thing with stocks is its 4d chess
the only thing that drives the stock price is what people are willing to pay
the market has evolved over time into the system we have today, where a stock/company has a bunch of indicators that investors look at and use to base their decisions on
so if you know that X indicator will go up and that X indicator going in a stock usually means the price will go up, you can expect the price to go up because everyone else will expect the same. Because the market now expects it to go up, people want to buy it to get profit off that. Now there is an influx of buyers. Sellers sell at higher and higher prices as people buy, until the price goes higher than what the market thinks it is worth, then people bid lower and orders go unsold
Now
Investors know that other investors this
So in turn they base their buying/selling of stock on the assumption the market will behave that way, which it historically has
this all forms the market, which is peoples expectations of how the stock market moves
if people do not think a stock is worth X price, there will be no buy orders for that stock at that price. It can not rise above X price
stocks are bought on the assumption that others will be willing to pay more than you bought it for, and sold on the assumption its peaked. Both sides think the other is an idiot for agreeing to buy/sell