Why did the stock fall when there is a big sell?

The stock market can compare large auctions, where big company ownership is sold. The investors involved have different views. While some investors can measure a particular company as a viable investment and are willing to raise prices; others have to sell. This kind of constant change causes the stock price to fluctuate. When more people want to buy, rather than sell, the stock goes up. When this happens, the investor starts at a higher price than the current price of the stock. On the other hand, the stock fell because more people wanted to sell, not buy it. In order to quickly sell its shares, people are willing to accept lower prices.

The number of sales of a particular stock on a given day must be equal to the number of shares on that day. In the stock market, this is called "quantity". In some cases, stocks at a given point in time are not attractive to new buyers and existing owners. The reason why a company loses charm may be a lot. The stock may fall because the profits fall, executives resign, a good investor sells a large piece of stock, loses a valuable customer, a factory burned, a stock-like decline in the market, the analyst downgrades the stock, Good products, lack of product supply, scientists rated products as insecure, litigation for companies, lack of corporate popularity, and even rumors of the wrong investors

For any reason mentioned, the company's stock May be damaged. As a result, the current stock price of the company is now unattractive for the current shareholders of the company and the stocks that are considering buying the company's shares. In this case, those who wish to buy the stock tend to require a lower price to accept the company's stock. This means that the stock's bid price is reduced. On the other hand, those who wish to sell shares of the same company will offer lower prices to attract and get rid of the stock. This obviously reduces the price of the company's stock. Ultimately, the buyer and the seller will agree on the price, which is equal to "buyer" and "asking price", the stock will be sold. The price will naturally be lower than the stock sold before the price, so even if a large number of selling, the stock will fall.

The relationship between the number of sales and the number of goods buyers held in any market, not just the stock market. The stock market's price rise and fall is similar to bouncing the ball's action. Some investors are concerned about the volatility of the stock market, but for those who want to steadily rise in the number of investors, this may be very frustrating. However, despite the volatility of the entire market and stocks, experienced traders will profit. In the absence of experience, individual investors need a reliable source of information and direction.

Therefore, it is advisable to carefully study the company's financial statements and assess their value before investing. You can also study the performance of the stock past, which will certainly show the future trend. In fact, this kind of fluctuation makes many investors become traders, who are trading according to the fluctuation of market and individual stocks. These traders make money in any market – up or down!