Are you unsure of the reason for the price of shares fluctuating on an everyday basis? The reasons are listed below.
Demand and Supply
In the market for stock prices, stocks is likely to fall if the number of selling is more than amount of buyers. However, when more investors want to purchase the shares the number of sellers willing to sell their stock and the price will rise. This is a typical illustration of the supply and demand curve. The next question is what drives supply and demand?
Market Psychological Effect
The supply and demand for the shares available to be traded is primarily caused by the mood of the market. If traders or investors believe the price isn’t going to live up to their expectations, they’ll sell their shares as quickly as is possible. However, if they’re positive about growth in the near future then they’ll buy more shares of the stock. What is it that is the reason for the market to shift?
Unfortunately, there is no definitive answer to that question.
The most evident factors are inflation and energy prices, interest rates, and quarterly earnings reports. stories about business events, war, terror, crime and fraud, and political instability. Be aware that when it comes to the market’s perception, the media plays an essential part. To help make news popular and attract the most attention Good things are seen as bad things at times. Therefore, you must filter the information thoroughly and don’t allow the media to influence your investment choice.
Individual Needs of Investors
It is the most difficult one to identify, yet it is the primary reason for price fluctuations in stocks occur daily. It is true that occasionally investors who purchase shares are given a set price for selling the shares, even prior to purchasing the shares. This means that even though everything is the same, the price of the shares could fluctuate due to their actions. Furthermore, experienced investors use trading tools that can tell the best time to purchase or sell shares to earn the most profit, but with the least risk. It is also possible to benefit from the fluctuation in prices every day once you are aware of how technical analysis functions.