Hey, what makes stocks go up and down?

As many have said it is the Law of Supply and Demand.

Simply put, price is directly related to demand and inversely related to supply. So if demand goes up (and everything else stays the same) price goes up, if demand goes down (and everything else stays the same) price goes down. With supply it is the opposite: Supply goes up (and everything else remains the same) price goes down, and vice versa.

The real question is: What determines supply and demand?

The answer is easy enough: market psychology. The problem is knowing what the market psychology is for a particular stock.

Some say that stock prices will go up if a company is making a good profit, has increasing sales, etc. But none of these have a direct effect on stock price. Plenty of companies with "good numbers" see their stock price fall. Why? Because the market psychology is not solely dependent upon the "numbers". These are "fundamental" investors, they trade based on the fundamentals of a company.

Others say that stock prices follow certain patterns that can be discovered with enough research. Again, this is not a fool-proof system. Market psychology is not cyclical. Do your moods match a certain pattern, all the time? I'll bet not. These investors are known as "technical" traders, they trade on the technical aspects of the stock price.

So what determines market psychology? Many things: The condition of the company, the condition of its industry (the whale oil industry is an example of an industry in bad condition), the condition of the overall economy (a recession affects a majority of companies), governmental issues (is the government likely to regulate the company out of existence?), country conditions (a company in Afghanistan is less likely to see its stock rise than a similar company in the US).

You can make an educated guess on market psychology by considering all of these and more, all at once. Obviously, it is impossible to know how each and every factor will affect a stock price. This is why no one can "time" the market, no one can consider everything at once.

These are the factors that make a stock go up and down.

New CEO
The phases of the moon.
New Product
Solar radiation and flare activity.
Institutional buying
Jim Cramer.
Alien manipulation.
Supply and demand.
War
Oil prices
Inflation
Interest rates
Panic
Fear
Greed

and perhaps 1000s of other variables. That's what keeps it interesting.
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There is a short term and a long term effect of stock prices. In the short term there are any number of factors that can cause a stock to go up or down. News about the stock is the number one short term factor. If the news is good, then the share price will go up. If the news is bad, then it will go down. Sometimes certain stock prices will go up or down based on the news about the industry that the coampany is in. Economic factors also may cause the stock price to go up or down. These are just short term price fluctualtions.

In the long term, the performance of the company will dictate whether the price of a particulart stock will rise or fall. A stock is not just a piece of paper to buy or sell. A stock represents ownership of business. If the business very profitable, then the stock price will rise. If the business is not that proifitable or is losing money, then the stock price will fall.

the reason is supply and demand, if there are more buyers than people wishing to sell the price goes up. If there are more sellers than buyers the price will go down. The factors creating the supply/demand can be anything ...... company announcements, profits, scandals etc

Sales or the lack there of.

The public confidence in what the company is doing.

Buyers > Sellers = Price Goes Up

Sellers > Buyers = Price Goes Down

There are a ton of reasons why there are sometimes more sellers or more buyers.

http://www.mastersoequity.com

http://www.optiontradingpedia.com

.

How many people want the shares (or don't) and how many shares are available...........................

In other words;
SUPPLY AND DEMAND

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