The ??PRICE?? of a stock at any given time is due to the buyer and seller of this particular stock reaching a mutual agreement with regard to its current value.
When the price goes up it is because the seller thinks it is worth more or there is a short supply of stock available.
The opposite happens when there is an excess of stock available, this effectively pushes the price downwards. So the current share price is an accurate gauge of the market value of the stock at this point in time.
PRICE is involved when you buy the stock, your potential exit price to limit losses [stop loss] and potential exit price to make your profits.
??GREED will push the price up. FEAR will push the price down.
??A low priced speculative stock is often priced as it is because it has not attracted the interest of a wide section of the market. Price is effected by as much by Inaction as well as by Action.
??The closing price is a reflection that shows how traders are relating to that stock. It is a reading of whether there is ??excitement?? or ??rejection of that stock.
??When you are buying a ??stock?? you have four options open to you.
??1. You can stay with your original price and wait for the share price to come down to you.
??2. You can chase the price and collect the shares you have decided on.
??3. Still chase the price but keep the same dollar value but get fewer shares.
??4. Buy your stock at the asking price.
Remember our decision to buy does not happen if there is no one wants to sell at that price. We are also powerless if someone is bidding a higher price for the stock than we are.
They will get the stock unless you put in a higher bid. (This is dependent on how much stock is available at the time.)
THE TWO MOST COMMON EMOTIONS ENCOUNTERED.
The most common is?? FEAR and ??GREED.??
And what effect do they have?
Here is a ??Classis?? example of what is happening on the stock market every day World wide.
Firstly Greed pushes the stock price upwards and Fear has the opposite effect by pushing the share price downwards.
Greedy traders start rushing in to get the stock at any price so they won??t miss out. . Then finding the share price suddenly reversing as ??Smart traders are taking their profits?? which then has the effect of causing the stock to commence sliding backwards as excess stock is now available.
This is the time when Fear sets in. The traders start to panic and start selling so as not to take too big a loss.
This puts more stock into the market, which accentuates the price slide downwards.
The smart traders who sold out at the ??high?? are now buying back the same stock at reduced prices.
As I have said before. How often does this happen? Every day somewhere in the Market this is occurring.
How do I know? I have been caught myself when I began trading and no doubt I shall get caught again. But now I am more aware of these ??EMOTIONS.??
1. The Good, Righteous, Spiritual Person a. I am worthy and safe if I am (or appear to be) good, right or spiritual.
2. The Perfect, Capable, Strong Person a. I am worthy and safe if I am (or appear to be) perfect, strong or capable.
3. The Victim, Abused, Unjustly Persecuted a. Others create my reality; they are to blame for my situation. b. The wronged person is right and worthy because the wrong -doer is wrong and evil. c. I am not worthy of something better than this.
4. The Weak, Incapable, Fearful, Dependent, Child a. I am not capable of coping with life by myself. b. Life is difficult.
5. The Guilty, Sinner, Bad, Unworthy a. I am guilty, unworthy, evil, a sinner. b. I do not deserve love, acceptance or help from others or God. c. I am in danger (without protection, vulnerable to punishment)
6. The Parent, Teacher, Savior, Responsible for others and everything a. I am responsible for others? reality, including their happiness, health, security, success, well being. b. Others cannot proceed or take care of themselves without me. c. If others are not well, I am to blame and have failed.
7. The Rebel, Reactionary, Challenger, Competitor a. My freedom is in danger. b. I must fight for my freedom, safety or self-worth. c. I actually need others.
8. The Intelligent, Informed, Superior, Counselor a. He who knows more is superior. b. If I show them that I know more than they do, they will love me and I will be worthy and safe.
9. The Indifferent, Irresponsible, Free-Moving, Disruptive, Insensitive, Lazy a. Whoever has responsibilities and / or does not fulfill them is in danger. b. I will suffer or fail if I take on responsibilities.
10. The Intimidator, General, Dictator, Aggressor, Abuser a. My safety and / or self worth are in danger. b. I must protect myself and others in the battle of life. c. Power and the offensive are the solutions.
11. The Interrogator, Critic, Mr. Right a. I am worthy when others are wrong. b. Others must answer to my questions. c. My self worth depends upon my being right and others being wrong.
12. The Aloof, Distant, Loner, Silent One a. I can protect myself from others by not emotionally interacting with them. b. I am worthy when others seek my attention.
11. The Spouse, Husband, Wife a. My self worth is dependent upon how well I am accepted and recognized in the role of the spouse. b. I must be accepted as a spouse in order to be worthy and safe.
12. The Woman, Man a. My self-worth is measured by how much I am accepted in the role of a woman / man. b. My self worth is decided by how much I am respected and desired by the opposite sex.
Any particular person may, however, in his self-analysis break these major roles into a wide variety of parts, which differ in numerous ways.
We can see there are various ways of understanding and labeling these personas. It is not so important what we name them, but that we recognize their existence and then learn to identify them, understand them, accept them and gradually help them to function harmoniously within us.
Both Strudy & Robert Elias Najemy are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Strudy has sinced written about articles on various topics from Investing and Trading, Investing and Trading and Stock. Christopher Strudwick is a keen amateur share trader on the Australian Stock Market Visit his weblog for more free articles and useful information at http://www.asxnewbie.com. Strudy's top article generates over 18100 views. to your Favourites.
Robert Elias Najemy has sinced written about articles on various topics from Self Esteem, Dating and Romance and Web Development. Robert E. Najemy, author of 25 books and life coach with 30 years of experience, has trained over 300 life coaches and now does so over the Internet. Become a life coach.Over 600 free article and lectures at. Robert Elias Najemy's top article generates over 74000 views. to your Favourites.