What makes stocks go up or down?
Regardless of the trading strategy you use, you may question why stocks move in one direction or another. Well, stock prices are influenced by different factors, it could be the market psychology, important news, the earnings results of a company, a political event but the most important one is supply and demand. Stock prices tend to go up when there are more buyers, and they tend to go down when there are more sellers. In the short term, stocks can fluctuate a lot in one direction or another. We will now review stock valuation.