Teach a Dumb-Fool Student of Mkt.

[uasish]

Rakesh,

Amazed & floored.

Asish

 

[uasish]

http://www.traderji.com/112869-post1.html

Except hand few of are we really trying ? Still nobody can teach me WHY it gains/losses.
Most of the Boarders here are Smart / Intelligent / Logical still nobody can take an effort to teach me.

We will pm to collect for s/w's giving Buy/Sell ,hanker to gather ALL Tips,as if those are our going to make us Rich overnight,why cant we try to learn ourselves at least 0.001% ,Trust me no S/W ,no Tips can make us Rich,let us plz try,any proffessional qualification needs dedicated Time to learn,then why dont we try this proffession,our laziness & mental blockade is just making "Sly by Night Operators Rich".

 

[jdm]

asishda,
your query is very similar to the question which often comes to any market particapants mind, i.e. if for every buyer there is a seller and for every seller there is a buyer, then why do prices go up or down? the answer to the above question and yours is very similar.

hope i am talking sense

cheers,
jdm.

 

[adilsaleem]

Hi jdm
I dont think we can relate what you have said to ashish's query. Based on a company's better performace the demand of a company's stock is decided which creates more buyers and vice versa. This questain has to do with the number of days the stock has gone up in the last three years and the number of days it has gone down. If both are equal then how did the stock move up so much (some stocks more than 300%). If we draw a table of the gained points in the stock for all up days and lost points in the stock on all down days then we put both the columns in descending order we would be able to see that the gain column most of the times beats the lost points column especially right on top of the table. So basically the gain points are bigger than the lost points.

 

[jdm]

Hi jdm
I dont think we can relate what you have said to ashish's query. Based on a company's better performace the demand of a company's stock is decided which creates more buyers and vice versa. This questain has to do with the number of days the stock has gone up in the last three years and the number of days it has gone down. If both are equal then how did the stock move up so much (some stocks more than 300%). If we draw a table of the gained points in the stock for all up days and lost points in the stock on all down days then we put both the columns in descending order we would be able to see that the gain column most of the times beats the lost points column especially right on top of the table. So basically the gain points are bigger than the lost points.

well adil thats exactly what i also put forward. if, for every buyer there is a seller (&/or vise-versa) then where is the mismatch? and if there is no mismatch then how and why the price changes.

 

[jdm]

Based on a company's better performace the demand of a company's stock is decided which creates more buyers and vice versa.

the price of a stock does not goes up due to "buying" or due to demand for the stock of the company (due to better performance). instead it goes up because theres very few sellers or inadequate supply of the companies paper. theres a fundamental difference between the two.

More Buyers then sellers

i never said more buyers or seller. for an executed trade there cannot be any more or less. it has to be equal and thus the question arises.

hope it clears.

 

[jdm]

Old question, old answer.

pls read my original post, i just sited similarities between the two questions (the one asishda put and the question of mine). thanks to our friendly bandars, everybody knows the answers

 

[uasish]

Hi jdm
I dont think we can relate what you have said to ashish's query. Based on a company's better performace the demand of a company's stock is decided which creates more buyers and vice versa. This questain has to do with the number of days the stock has gone up in the last three years and the number of days it has gone down. If both are equal then how did the stock move up so much (some stocks more than 300%). If we draw a table of the gained points in the stock for all up days and lost points in the stock on all down days then we put both the columns in descending order we would be able to see that the gain column most of the times beats the lost points column especially right on top of the table. So basically the gain points are bigger than the lost points.

It would help to us if you can post the findings here so as all to see.

 

[oxusmorouz]

Hi jdm
Based on a company's better performance the demand of a company's stock is decided which creates more buyers and vice versa.

A study conducted in the US market shows that earnings reports and index performance during the 100 year period between 1900-2000 indicates indifference. Probability that the stock price falls and rises with earnings is .52, meaning that if earnings have risen or fallen should not affect the stock market performance in the given year. (Source: Practical Speculation by Victor Niederhoffer and Laurel Kenner).

 

[oxusmorouz]

asishda,
your query is very similar to the question which often comes to any market particapants mind, i.e. if for every buyer there is a seller and for every seller there is a buyer, then why do prices go up or down? the answer to the above question and yours is very similar.

hope i am talking sense

cheers,
jdm.

It primarily dates us back to the principles of demand and supply. If at a given price, the quantity demanded exceeds the quantity supplied, the person who intends to buy has to necessarily raise his bid so that the quantity supplied increases with price. Bargaining would be another term used.