If you sell stock after prices have gone up, why does that cause stock prices to go down?
Buy low, sell high but why does the stock price go down if many people with that stock decide to sell and make a profit?
What are the main factors that cause stock prices to go up and down?
Please don't give me links.
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Answer by John W
There is no entitlement to the prices that you see, they are only reports of the prices of the last trade and what unfilled orders are on the order book (asks and bids). When you want to sell, you have to find a buyer and you may decide to settle on a lower price to entice a buyer, likewise when you want to buy, you may settle on a higher price in order to entice a seller. If more people want to sell then there are buyers, buyers may be hard to find and hence prices will drop to entice more people to buy, likewise if there are more buyers then sellers then sellers may be hard to find so prices will be raised in order to entice more people to sell.
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