Trading Paradigm

Train and Develop Professional-Level Trading Skills

  • ARTICLES
  • FREE COURSE
  • TOP RATED
    • #1 Mindset Course
      • 2ndSkies Trading
    • #1 Funding Program
      • Topstep Futures
    • #1 Futures Broker
      • Edge Clear
    • #1 Stock Newsfeed
      • Benzinga Pro
    • #1 Stock Screener
      • Finviz
    • Recommended Books
  • FAQ
  • TRUTH/REALITIES
    • The Fantasy Gap
    • Proper Expectations
    • Knowledge vs. Skills
    • Entertainment vs. Training
    • Trading vs. Gambling
  • MINDSET/PSYCHOLOGY
    • Natural Biases
    • The Mirror Concept
    • Self-Transformation
    • Failure is Feedback
    • More Mindset Articles
  • EDGE/EXPECTED VALUE
    • Market Methodology
    • Expected Value Formula
    • Asymmetric Risk-Reward
    • Trade Tracking & Review
    • More Edge Articles
  • FREE RESOURCES
  • FREE COURSE: TRADING SUCCESS FRAMEWORK → GET STARTED BECOMING A REAL TRADER

What’s the #1 Reason Stocks Move?

April 8, 2017 By Matt Thomas Leave a Comment


The #1 Reason Stocks Move → Sentiment.

Stocks move for a reason. It all depends on supply and demand. If there’s more supply than demand, then the stock price will fall. Conversely, if there’s more demand than supply, then the stock price will rise. But what causes the amount of supply and demand? I’d argue that supply and demand is caused entirely by sentiment.

Investopedia Defines Sentiment as the overall attitude of investors toward a particular security or financial market. It’s the feeling or tone of the market, as revealed by the activity and price movement. What we should be taking away from this definition is that attitude determines value. Optimism causes demand and pessimism causes supply. Short-term traders often utilize technical analysis, more specifically – Candlestick Charts, in order to break down sentiment. Catalysts can cause changes in sentiment as well (events, press releases, news, deals, etc.). In the end, all stocks move based on the underlying sentiment of the market, sector, and the particular security in question.

Related Page: #1 Reason 90% of Traders Fail and How You Can Avoid Being One of Them

Filed Under: The Daily Dose: Questions For Stock Traders

TRADING SUCCESS FRAMEWORK (FREE COURSE)

SEARCH

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

TRADING SUCCESS FRAMEWORK (FREE COURSE)

SEARCH

#1 Beginner Learning Program

Thomas Kralow Trading Academy - University Grade Trading Education

Read Full Thomas Kralow Review

#1 Trading Psychology Course

2ndSkies Trading With Chris Capre

Read Full 2ndSkies Trading Review

#1 Funded Futures Trader Program

Topstep Trader - Top Funded Futures Trading Program

Read Full Topstep Trader Review

#1 Stock Market Newsfeed

Benzinga Pro - Top Rated Stock Market Newsfeed

Read Full Benzinga Pro Review

#1 Futures Brokerage Service

What is EdgeClear - Is it the Best Broker to Trade Futures With?

Read Full Edge Clear Review

#1 Stock Screener Tool

Finviz and Finviz Elite - Top Rated Stock Screener

Read Full Finviz Elite Review

Risk Disclaimer||Affiliate Disclosure||Privacy Policy||Site Map||Contact||About