How Does Stock Market Logic Work?
The stock market is a market where securities such as stocks are bought and sold. Those who want to invest in the stock market send their orders to the stock market through intermediary institutions. Orders specify prices and quantities for buyers and sellers. The exchange executes the transactions by matching these orders.
The basic logic of investing in the stock market is to buy low and sell high. Thus, investors profit from the difference. Prices in the stock market are determined by the balance of supply and demand. When supply exceeds demand, prices fall, and when demand exceeds supply, prices rise.
To invest in the stock market, it is necessary to follow many factors. These include the performance of companies, economic data, political developments, and global events. These factors create price movements by affecting supply and demand in the stock market.
To be successful in the stock market, investors need to analyze the market well, determine the right strategies and act in a disciplined manner. The stock market is a market with the possibility of both profit and loss. Therefore, investors should manage risk and control their emotions.