Why Do Stocks Move?
It's a constant tug-of-war. Here is what pulls the rope.
1. Buyers vs Sellers
At the exact same moment, every trade has one person convinced it's time to sell and another convinced it's time to buy.
Price Goes UP
More Buyers (Demand) > Sellers (Supply)
Buyers have to bid higher prices to convince reluctant sellers to part with their shares.
Price Goes DOWN
More Sellers (Supply) > Buyers (Demand)
Sellers rush for the exit and lower their ask price to find anyone willing to buy.
2. The Catalysts
Supply and demand shift instantly based on News.
Company News
New product launch (iPhone), CEO gets fired, or a scandal breaks.
Macro Events
Interest rate hikes, wars, pandemics, or elections move the whole market.
3. The Earnings Report
Every 3 months, public companies are required by law to show their homework.
The Expectations Game
It doesn't matter if the numbers are "good". It matters if they are better than expected.