Why do stock prices move (Part I – Short Term)

At a glance Stock exchanges like the BSE and NSE facilitate stock trading by providing the platform to match buyers with sellers The key price-setting mechanisms buyers and sellers follow are “at limit” (setting a pre-defined price) and “at market” (taking whatever is the prevailing price) When more buyers look to buy “at market” the price trends upwards and when more sellers do the same the price declines An investor’s ability to deal with short-term price movements has a huge impact on her success or failure Imagine you walk into a street market in a large city… You’re thinking of

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