Why stock prices fluctuate daily?

Question

Please tell me how the company stock price fluctuate daily , why it increases or decreases daily ,,,please dont tell me it all depends on demand and supply,,,tell me some scientific and technical reason ...

Answer 1

Rather than understanding why stock price fluctuate daily, it is better to understand human psychology. in stock market, greed and fear drive stock prices ups and downs. though there are economic indicators (like inflation, interest rate, corporate earnings etc.) that able to explain on certain price movement, others still and will remain hidden. nobody in the world can explain exactly what happen in the stock market and what causes the stock price fluctuations.

that is why, technical analysis came into picture. though it is very subjective topic, but certain human behaviors will remain the same; greed and fear. the price movement somehow able to reveal some pattern that reflect to human 'greed and fear'. given an example, they buy when they 'feel' the stock is affordable and sell when they 'thought' the stock is already over-valued; with something in mind to buyback when the price drops later.

if you are serious about trading stock, these are the topic that you need to go deeper. as each stock has different 'type of player', its pattern will be different to another stocks. stock charting software able to help you to do the analysis, but to me nothing beat human intelligent; which is why it still need your 'human judgement'.

however, if you are incline to invest for long-term, daily price fluctuations is the last thing you will ever to consider. instead of betting in 'human behavior', you are investing in profitable businesses. however, selecting profitable businesses is crucial than if stock traders, selecting stock with 'high beta' is more than important.

Answer 2

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Answer 3

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 and vice verse.

So the real questions is what determines supply and demand? The answer is market psychology. The problem is knowing what the market psychology is for a particular stock.

Fundamentalists 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 because the market psychology is not solely dependent on the fundamentals.

Chartists say that stock prices follow certain patterns that can be discovered with enough research. Again, this is not a fool-proof system. Market psychology cannot be read into a chart pattern.

Many things determine market psychology. For example, the condition of the company, the condition of its industry, the condition of the overall government, and investor fear and greed. 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.

An excellent book on this subject that is easy reading is "the Predictors" by Thomas Bass. It's a story about how some scientists used chaos theory to try to trade their way to a fortune on wall street.
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Answer 4

you should know that stock prices do not fluctuate for every stock. prices of some share go high and never come down that particular day.Price of others go down and never come up again and prices of remaining fluctuate up and down,Why? if there is positive news prices go up and vice versa.if no new news there are fluctuation some people who have gained much they are contented at liwer price other who gained little want higher price so fluctuation occurs.these are my ideas if someone wants to comment most welcome Tanweer

Answer 5

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Answer 6

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RE:
Why stock prices fluctuate daily?
Please tell me how the company stock price fluctuate daily , why it increases or decreases daily ,,,please dont tell me it all depends on demand and supply,,,tell me some scientific and technical reason ...

Answer 7

In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tinyurl.im/aH4x1 An option has only two outcomes (hence the name "binary" options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

Answer 8

There is none. If there were a scientific or technical reason then stock prices would be predictable.

The truth is supply and demand, or, if you prefer: fear and greed.

Answer 9

There would be no market without fluctuation.