How does a stock price actually go up or down?

[Wandering Dragon]

The market price of a stock is simply the last price at which a buyer and seller agreed to transact.
A stock goes up when a buyer is prepared to pay more and does so. A stock goes down when a seller is prepared to sell for less and does so.

I understand this now

Why that happens is another story. Could be an announcement, economic news, or some change in the perception of the stock's value.

Why thats happens is what's mostly causing the confusion..........because if its to do with announcement, economic news, or some change in perception of stock value, then how can prices be going up and down so much every second and every minute, every hour etc

I mean is there news or announcements coming for every stock in the market every hour of the day, because prices are going up and down significantly every hour of every day, up to resistance, down to support, up to resistance down to support, or somewhere in between. what could be changing peoples perception or decision to buy at a higher than market price or sell lower than market price every hour of every day.

I think you may be over-complicating the issue a little.

Most probably but i want to try and understand it inside out, so i can be as aware as possible on whats happening

.
Now I could be wrong but I suspect you thinking this way re Price, because you are contemplating whether it can be manipulated higher or lower based on what price you submit your order at for outrageous gains …

Not at all, i'm looking to genuinely understand and learn everything so i can become a pro trader. I have no intention of anything dodgy or illegal, i really want to become a good trader and make a good living from it like others are.

 

[tech/a]

Most probably but i want to try and understand it inside out, so i can be as aware as possible on whats happening

Honestly you don't have to.

You just have to know how to trade and how to skew the numbers in your favor.
Every opinion of the analysis you do is yours and yours alone.
Your perception of opportunity will not be the same as those on the opposite side of your trades.
Whether your buying or selling.

Very very few make a good living from Trading
Id say youll need a capital base of $300-500K to trade professionally.

There have been many threads on this topic.

 

[Mr Z]

Focus on risk control.

 

[Wandering Dragon]

Very very few make a good living from Trading
Id say youll need a capital base of $300-500K to trade professionally.

Well according to google and some other sites the average income of a day trader is approx $500,000 pa, not sure how reliable that it.

I remember for a good week or two when i was doing very well i was making $1k to $1.5k a day, and that's when i got over confident and thought i was going to be rich and i dropped the ball and started trading on emotional excitement thinking i'm a winner and became careless.

I still believe if i fine tune my method, specially like a few here have already mentioned fix my risk control, i can make a decent money. The reason i'm about even today after 8 months, are those few bad trades which i made, i should've been happy to sell at a small loss, rather than let is slide with the hope of it correcting and coming back up, which is stupidity, greed and inexperience from my part.

But in my life i don't have any friends or family that are into this, so iv been trying to self teach my self via youtube and analysing real time market data, so thats why im here so i can be part of these communities so i can learn more

 

[Wandering Dragon]

Focus on risk control.

you are 100% correct, but one problem i have on my exchange is that i cannot enter a limit order and stop loss order at the same time for the same stock, and as i am looking for a short gain quick exit it doesn't make sense to use the 1 order i have for that stock and select stop loss, because otherwise i could miss my sell price.

i'm still thinking about this and what strategies i can implement to improve this

 

[tech/a]

The average income for a day trader would be zero.

Anyone making a profit day trading isn’t average,

I’d be trading futures not stock.
You can trade short and long
Liquid markets
Plenty of choice

 

[Wandering Dragon]

I’d be trading futures not stock.
You can trade short and long
Liquid markets
Plenty of choice

Unfortunately in the crypto world or at least on my exchange its only long positions and recently brought margin trading.

 

[barney]

The average income for a day trader would be zero.

Anyone making a profit day trading isn’t average,

I’d be trading futures not stock.
You can trade short and long
Liquid markets
Plenty of choice

Yep …..

Can I just say …. welcome again @Wandering Dragon ……. I remember when I first joined ASF, I asked what possibly seemed unusual questions to others who had been trading for some time, …. but they were poignant to me personally given my unusual situation and perception of the market ….. so well done for asking … and well done to the many who have offered their opinions to try and help .. that is what keeps ASF moving forward, and hopefully you will find the answers you are after, and then be able to add your own input to help the next wave of ASF lurkers

 

[Wandering Dragon]

Yep …..

Can I just say …. welcome again @Wandering Dragon ……. I remember when I first joined ASF, I asked what possibly seemed unusual questions to others who had been trading for some time, …. but they were poignant to me personally given my unusual situation and perception of the market ….. so well done for asking … and well done to the many who have offered their opinions to try and help .. that is what keeps ASF moving forward, and hopefully you will find the answers you are after, and then be able to add your own input to help the next wave of ASF lurkers

Thank you Sir!

I have certainly got my answer

 

[Joules MM1]

To a point.
If I saw something at way below my perceived fair price Id certainly look at it.

I know what your getting at a buy or sell at a price higher or lower in the Market depth in itself does not
trigger an action. Only at the coal face.

it's the "to a point" moment i am talking about

responsibility

the difference in knowing a cohesive trade technique that defines absolute bargain versus adding to a loser, have you qualified that difference in real time for that instrument?

big difference that can be qualified thus: emotive logic versus cognitive logic
emotive logic is dominant for a single retail trader when that trader has no trade technique to validate the extent or price extreme, time is an important key, how much time needs to pass and how much data do you need and/or can you get that says your idea of a bargain is merely an miss-pricing if you accept the market is always right, how often is the market wrong?

how do you determin the auction has not correctly adjusted the "fair value"

it is not the price that causes a trader to take action, the price is merely a marker of perceived value, for the trader to extract further value (by entering the trade) the trader needs to have two things: a technique for adjusting risk and an exit strategy

keep in mind a complete (my assumption) beginner is asking the question

the thread is mostly, todate, a series of what-if mechanical questions as a way of extracting value without, i suggest, understanding how to frame value

 

[Gringotts Bank]

Well according to google and some other sites the average income of a day trader is approx $500,000 pa, not sure how reliable that it.

In Australia, the average futures trader makes 250k/pa. But remember these are guys who are full time pros (the ones who have survived among the many who have failed). The average figure for ASX day trading* would be quite low, imo.

*exiting all positions EOD.

 

[Wandering Dragon]

But remember these are guys who are full time pros (the ones who have survived among the many who have failed).

Ohh yeah of course, if it was easy and whoever tried it made $250k pa then everyone would leave there job and do that. Just like how everyone who starts a business doesn't succeed.

For those who made it and are successful, it surely cant be luck right? they have methods and strategies which through experience,trial and error they have perfected. If there is a way if you put your mind to it and commit yourself to it then someone els can find the/a way.

I guess if you don't give it a shot you will never know how high you can get and the way i look at it is risks, challenges and difficulties put you off then you will never get anywhere in life and your only option would be to have an office job or work for someone els.

 

[frugal.rock]

A stock's price goes up and down depending on the uprampers and downrampers!
Pumpers and dumpers!
Capish?
I explain stock trading to the kids as I bought a bunch of bananas and then sold them at a higher price.
That they understand.
Telling them I bought a bunch of Fintech FTC blockchains, they don't.
Good luck with your trading and DYOR.
Some notes on supply and demand or demand and supply as I prefer.
I think you wrote something like when the price goes up, supply increases.
Many cases yes, many cases no.
Occasionally supply decreases on a high price and the demand is high for whatever reasons, or no apparent reason...? eg: announcement, speculation, 'insider trading' volume jitters etc
I always make sure I am happy with the underlying fundamentals of a stock. Research, cop a feel. Some basic trend charting...(cigarette packet across the phone screen usually for me, lol )
Timing is key. As is patience.

F.Rock

 

[axyd]

Yea, the answer is that there's no such thing as a stock price as a single number, it's just a simplified abstraction. There are sets of orders of buyers and sellers and when price match orders are executed.