Trading Styles & Why Stock Prices Change: A Beginner’s Guide
Understanding how the stock market works is not just for experts—it’s for anyone looking to grow their wealth. One of the most interesting things about the market is that stock prices change constantly . For beginners, this can seem confusing: why is a stock $100 now and $101 just minutes later? In this guide, we’ll explain it step by step: why prices move, and the most popular trading styles that investors use to profit from these fluctuations. Why Do Stock Prices Change? 1. Supply and Demand The most basic rule in the stock market is simple: If more people want to buy a stock than sell it → price goes up. If more people want to sell than buy → price falls. Example: If a tech company launches a new smartphone that everyone loves, more investors want to buy its shares. Higher demand = higher price. 2. News and Company Events Stock prices are highly sensitive to both company and global news: Positive events (strong profits, new projects, partnerships) → pri...