What influences stock price movements?

Coxy said:

Hello all,

This is my first post on the site after reading many of the threads, there is one thing that I have always wondered and never really fully understood. This is the price movements of a stock price and all the influencing factors that lead to a stock price movement.

Is this purely based on volume of trades or are there other factors that determine the movement of a stock? I hope this isnt a stupid question but would be great to hear all of your thoughts on the determining influence on a stock price movement

Thanks
Coxy

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The emotions of market participants, namely the collective GREED and FEAR of the bulls and bears. For example, stocks don't go up or down 'because theres more buyers or sellers' - the no. of buyers and sellers is always even. A stock will rise in price only because of one reason and that is because the bulls are getting more greedy and willing to pay higher prices.
regards

The stock market is a reflection of the psychology of all players involved. Stocks can surprisingly rise on bad news and yet remain unaffected or even fall on good news.

One reason why investors find it so hard to time the market is that nobody knows exactly what influences stock price movements.

Rather than be obsessed with daily random movements, it is best to look at the fundamentals, allow ourselves a margin of safety and then keep the stocks in cold storage.

jeflin said:

One reason why investors find it so hard to time the market is that nobody knows exactly what influences stock price movements.

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I know what influences movements...you ready? ....supply and demand

jeflin said:

Rather than be obsessed with daily random movements, it is best to look at the fundamentals, allow ourselves a margin of safety and then keep the stocks in cold storage.

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Oh please, daily movements aren't random. If you were correct there would be no such thing as a consistently profitable day trader.
If you dont understand it, then it will appear random. But just because it appears random to you doesnt mean it is

Supply and Demand are the reason prices go up or down but not what influences them the influence is purely our emotions, greed and fear and hope.
also there is nothing random about the prices but our emotions get in the way of reading the market. As an example try paper trading and see the spectacular results you can achieve and then put real money in and no matter how you try your emotions change your perceptions and your actions even with a well developed trading plan.Without one (85% lose money in these markets )results are probably disastrous.

Initial price has to be based on fundamentals and then future earnings guesstimates say which direction price goes but price has nothing to do with this in the bigger picture or it wouldn't get so far out of kilter and go so far up or come so far down and the most dangerous thiung to say is XYZ is worth $x because of fundamentals as they are only known in hindsight and are history. all a stock is worth is the last price it traded at