Stock Prices and their influential factors

The stock market is that mirror of the economy. Therefore, the prices of the stocks are affected by economical factors. The supply and demand are the ones influencing stock prices. However, there are many factors to be taken into consideration when analyzing the trends of the stock market. In this article you will learn the most important influential factors when it comes to stock prices.
The main idea is that if the supply is higher than the demand, the prices will fall while if the demand is greater than the supply the stock prices will increase. This is what you should keep in mind before you invest on the stock market.
Many people know that economical factors are the most important ones influencing the stock prices. This is partially true, but you should not forget about psychological factors too.
For example, in 2008 there were a lot of people scared about the economical crisis and this made people flee the stock market and leave it without demand. Of course, the stock prices were down because of this. Therefore, psychological factors can be extremely important too when it comes to affecting the stock prices.
Fear and greed are the two emotions that can influence the stock prices the most. The fear of loss makes people sell their stocks and this thing results in even more loss.
On the other hand, the greed is another important factor because those people who do not want to miss out opportunities will rush and purchase a lot of stocks making their value increase. Because they have some profits they want more and therefore they buy more stocks. This leads to an unjustified increase of stock prices and can be terrible too for the entire market.
Many people make the mistake of considering a small trend a very important sign. Therefore, a lot of people sell when the stock prices begin to decrease and buy when the stock prices begin to increase. This is wrong because the stock prices can’t increase or decrease forever. The volatility of the stock market is a known fact all over the world so you should not believe that this will change once you purchase stocks.
This greed and fear can be induced by the media too with their news and charts. A lot of people think that the media is the primary influential factor when it comes to stock prices. This is because presenting the economical crisis in an augmentative way makes people want to sell their stocks very fast and this can only result in more loss.
Therefore, you should know that media, psychological and economical factors are the most influential factors when it comes to stock prices.

The stock market is that mirror of the economy. Therefore, the prices of the stocks are affected by economical factors. The supply and demand are the ones influencing stock prices. However, there are many factors to be taken into consideration when analyzing the trends of the stock market. In this article you will learn the most important influential factors when it comes to stock prices.
The main idea is that if the supply is higher than the demand, the prices will fall while if the demand is greater than the supply the stock prices will increase. This is what you should keep in mind before you invest on the stock market.
Many people know that economical factors are the most important ones influencing the stock prices. This is partially true, but you should not forget about psychological factors too.
For example, in 2008 there were a lot of people scared about the economical crisis and this made people flee the stock market and leave it without demand. Of course, the stock prices were down because of this. Therefore, psychological factors can be extremely important too when it comes to affecting the stock prices.
Fear and greed are the two emotions that can influence the stock prices the most. The fear of loss makes people sell their stocks and this thing results in even more loss.
On the other hand, the greed is another important factor because those people who do not want to miss out opportunities will rush and purchase a lot of stocks making their value increase. Because they have some profits they want more and therefore they buy more stocks. This leads to an unjustified increase of stock prices and can be terrible too for the entire market.
Many people make the mistake of considering a small trend a very important sign. Therefore, a lot of people sell when the stock prices begin to decrease and buy when the stock prices begin to increase. This is wrong because the stock prices can’t increase or decrease forever. The volatility of the stock market is a known fact all over the world so you should not believe that this will change once you purchase stocks.
This greed and fear can be induced by the media too with their news and charts. A lot of people think that the media is the primary influential factor when it comes to stock prices. This is because presenting the economical crisis in an augmentative way makes people want to sell their stocks very fast and this can only result in more loss.
Therefore, you should know that media, psychological and economical factors are the most influential factors when it comes to stock prices.

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