Factor in trading stocks, shares market, the law of supply and demand in stock engines
Generally, the movement of stock prices or currency of a country moving up and down, due to the presence of the dynamics of supply and demand (supply and demand). This is in spite of the law of supply and demand. Just a reminder that it is the law of supply and demand:
Law of supply
a positive relationship between the price and the quantities of the products offered. The prices that took place in the market will be directly proportional to the amount of assets available: an increase in market price will lead to a growing number of nominated properties and a decrease in market price will lead to a decrease in the amount of goods on offer. Image: when a seller believes that the price of their products was high, the seller will certainly make many more products in order to get the most benefit. However, when prices are low, seller will sell the item to the sobriety.
Law of demand
the negative relationship between price and the amount of requested items: price, besides the amount of necessary goods. On the other hand, the price will be higher while the quantity of goods demanded. For example, when you want to buy something, you expect articles to buy cheap low price/so you can buy the item with the amount more. However, if the price is high, most people will buy certainly with a small amount of money because it is limited or the replacement of items that cost less.
Not very high, the dynamics of supply and demand also influenced by several factors, namely: fundamental, technical and psychological. The factors that must be fully understood by a professional because these factors are related by a merchant in the analysis later. The following description of each of these factors:
Fundamental
Important fundamental factors learn because this contributing the main factor behind the current movement of prices. New price of trend movements ' are often caused by the presence of the basic principles of positive factors. In other words, the key element is a very influential factor of the price movement so it is directly linked to the evolution of the shares and the value of the currency.
The basic element is the factor that global indicators, such as: geopolitis policies state conditions economic, monetary, political, politics, etc., which are very sensitive to the market so that the impact of the decisions can be felt or directly through the evolution of the price of the currency concerned. The analysis refers to the indicator is called fundamental analysis (see fundamental analysis chapter), and traders use fundamental analysis to support the inclusion of the Foundation of the call.
Technical factors
This factor is undoubtedly a factor derived from the fundamental factors, which are both also refers to the indicators. However, in contrast to the indicators contained in the fundamental factors, indicators of technical factors do not refer to indicators world, but instead of available indicators on a chart.
Although it does not have a direct impact on the evolution of the prices of key technical factors, often representing the execution of decisions taken by the actors of the market and the effect on the total price movements. As a result, the prices seem to move follow a technical reference.
Analysis based on technical indicators is called technical analysis. In practice, the technical analysis simply does not illuminate the economic, political, or conditions geopolitis existing, but only based on observations of the price movement activity already and will. ( For more details please read : Market Trend )
Traders who use this analysis as supporting so-called technical traders trading or it could be called a technician. Although not referring to global indicators, technical traders remain should not override the existing fundamental factors because the dominant or trend known as the major trend can only be created due to the existence of fundamental factors. They cannot cause a ' trend ' price movement was created, so they are just being talkative over what had happened and tried to take advantage of price fluctuations is going on, but still give priority to the dominant trend as a reference.
Positions that are contrary to the direction of the dominant trend is certain to be disastrous or great harm to the culprit. Therefore, never once did against the direction of movement of the dominant trend. Perhaps that is what the message of world investment, saying "the Trend is friend, don't fight the trend!".
Psychological Factors
Because human beings have a memory, prices also have memory. The price move is a form of human perception (read: trader). The perception of what I mean here is the thought that its traders concluded upon a rumor circulating and can influence the decision making of this transaction, it's either ' buy ' or ' sell '. The perception of where the most powerful, that is what will be reflected in the price movement.
For example: there will be an announcement of the European region in crisis management by the European Central bank (ECB). Normally, the impact of a new fundamental news like this will affect the price movement of the currency (in this case the euro) after the news was released. However, it is often precisely the price already move it first (in this case the move soared) shortly before the release of the news, as rumors are circulating. However, once the news is completely released and the ECB agreed to provide the stimulus that in fact it should be able to make market participants euro price thus optimistic, even corrected sharply until it reaches the previous level — or even deeper.
Things like that are known by the term ' buy the rumour, sell the fact '. Because in forex we have two-way transaction, could also quote my last reply dong back so ' sell the rumour, buy the fact? Valid? Conditions such as these that can only be explained from the flanks of psychological, not from fundamental nor technical side. In fact, very few traders who are able to understand the psychological side of this. Anyone who is able to understand it, he will reap more profit. Roughly like that is the psychology of the market (market psycologic). Flying hours will be by itself will teach you all the things of yesteryear. So, no need to think should take college psychology used to be adept at the psychology of the market.
So the conclusion that drivers of stock price and the value of the currency is in fact none other than the man himself. And in making his decision, human (read: trader) will be strongly influenced by some factors such as already described above.
Custom Search
0 Response to "Strategy Tips Market Movers"
Post a Comment
Please leave opinions, suggestions, criticisms and comments in here...