Reasons why stock prices go up and down

    Hello Luna, see you soon. Welcome to the Talking about Money channel. Newcomers to stock investing may wonder why stock prices go up and down. It goes up and down every minute, every hour, every day, even every year. What influences the rise and fall of stock prices? Well, before going into the causes of rise and fall of stock prices, let's first discuss the mechanics of buying and selling stocks themselves. Since these transactions are the basis of stock price formation, how these transactions occur in the stock market, buyers and sellers agreeing to buy or sell a particular stock at the same price, are the same as in traditional markets. It has the same concept as a buy and sell transaction. In order to purchase his goods at a low price, these sellers and buyers negotiate prices with each other and finally agree to buy or sell the goods at a certain price. Please try to imagine.

Reasons why stock prices go up and down

    For example, there are two groups: a group of buyers who want to buy BRI bank shares, a group of sellers who want to sell BRI bank shares, and a group of buyers who want to buy BRI shares at Rp. Since there is no price agreement between buyers and sellers, there are still no buy-to-buy deals for shares, but at some point someone will have to give in, be it the buyer or the seller. For example, let's say you're a seller. I would like to transfer and sell my shares in BRI. The price is Rp 3,500 if there is already an agreement or price match between the seller and the buyer so that the buy and sell transaction of BRI shares takes place at the price of Rp 0,3,500 and this price becomes the stock price benchmark. of his BRI for subsequent transactions.

    In stock trading, this bargain is reflected in the bid and ask prices. In a stock application, the money offer is the buy-side price offer and the offer is the seller's price offer. Looking at a stock price movement chart, this chart represents the price movements of stock trades between sellers and sellers. Buyer. The question is why did stock trading prices fluctuate? Sometimes it's up and down half a percent, sometimes it's 2 percent, sometimes it's tens of percent up and down. what is the reason?

    In short, the move stems from the trading power of sellers and buyers in the stock market. If a stock's buying power is higher than its selling power, it means that there are many requests to buy that stock. If the seller has set a higher price than the previous transaction price, but there is a strong urge to buy a particular stock, the buyer will still execute the offer to sell, so this transaction will continue to push the stock price upwards. Imagine the opposite for selling. power is greater The higher the purchasing power, the more demand to sell those stocks.

    Imagine that many people want to sell a stock immediately, and even if the buyer's bid is lower than the previous transaction price, the seller continues to fulfill the bid and the deal is made. So the execution price is always high and low compared to previous trades, so the stock price keeps going down. We hope that you will understand that various factors, such as internal and external news, naturally induce trading power.

    Now I would like to talk about seven things. Factors that can affect stock price movements include company performance, industry sentiment, company behavior, economic conditions, technological price trends, investment manager restructuring, and foreign trading. will be Let's explain them one by one. The first is company performance. This can be seen from the financial statements that the company reports in its quarterly or annual financial statements. You can see a company's performance reflected in its financial statements, balance sheet, and cash flow statement. lead to changes in stock prices.

    The second is industry sentiment. Sentiment in this industry is usually driven by external conditions or specific policies, such as commodity prices and exchange rates, that can affect the performance of a particular sector. Rupiah, the selling price of a particular product at the reference rate (such as a rise or fall in the reference rate), has a significant impact on the performance of companies in industries closely related to lending rates. From banking to real estate, it's no surprise that this sentiment can influence stock prices to a greater or lesser degree, whether short or long term. Next is a simple corporate action. Corporate Actions Affect Investors and Shareholders Actions, policies, or decisions made by a company affect shareholding ratios, number of shares held, and the interests of other shareholders. Of course, the perceptions of those shareholders are the stock prices in question.

    To learn more about corporate actions, read this article. The link you saved in the fourth explanation is the economics term in this case. Take for example his September 9 case yesterday when DKI Pemprov decided to conduct his full PSBB in Jakarta. Data relating to actual business development, which will be reflected in the next quarter's annual financial statements. In the midst of this uncertainty, some traders and investors who are unwilling to take risks may ultimately decide to sell their shares.

    What happened? The next day, the JCI price fell by 5%. The next day, technical price movements were recorded, and all past stock price movements were recorded and reflected in charts that showed traders' psychological patterns in stock trading. Finally, the chart is analyzed with various available indicators to generate support and resistance points.Support and resistance points (*sorry, reversed positions) are for traders to take specific actions. is often used as a benchmark for,

    As such, these points can affect purchasing or selling power and ultimately affect future stock price movements. For those of you who don't know, investment managers responsible for managing mutual fund portfolios also often decide to buy and sell stocks in bulk. Typically, this action is taken when the number of stocks falls below industry conditions and it is no longer appropriate to take profits or align portfolios to benchmark his indices.

    Now, buying and selling mutual fund investment managers is known as rebalancing or rebalancing the last portfolio by buying and selling foreign parties. What you need to know Foreign parties are very active in the process of buying and selling shares in Indonesia, but the buying and selling of shares by foreign parties is likely to lead to a wealth of economic and economic It can be influenced by many factors, ranging from political sentiment. If the stock price of a particular stock and Indonesia itself is skyrocketing, you will find many indicators of foreign movements in the stock market from the various stock analysis platforms available.

    These are the seven factors that influence the movement of stock prices. Hope this helps, so far. How is your experience? Stock investment or trading? Let us know your experience in the comments section. See you in the next article. Keep an eye on the talk about money channel because the talk about money never stops 

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