The stok price that you see in the online software display every day will move up and down. Many novice traders ask the concept of the cause of the rise and fall of the stok price.
Therefore, we will discuss in this post. However, of course in this post we are not just discussing the basic concept of ups and downs in stok prices. I will explain in more detil to its application in the stok pasar.
In the basic concept, what causes stok prices to rise and fall is due to DEMAND and SUPPLY. Yap, this is the simplest concept. This concept applies also in real trading.
If there are many people (traders / pasar participants) who want to buy shares or there are many requests, then the stok price will tend to rise. On the other hand, if many pasar participants want to sell shares, the stok price will tend to fall.
So the stok price can go up and down because every day there must be many traders who trade these stoks, namely traders who buy and traders who want to sell shares.
That’s where a price mechanism is formed, a price agreement (matched order), so that there are many stoks that go up or down.
But the suplai and permintaan that occurs in the stok pasar is influenced by many things. Traders want to buy and sell stoks because there are many considerations. What are the considerations?
Causes of rising stok prices
The stok price is already cheap / discounted. Also learn: Full Practice of Finding Potongan harga dan Cheap Stoks.
Positive news that can increase the confidence of traders to buy shares.
The stok price is already good to buy.
In general, these three things can make stok prices rise. So when the stok price is technically discounted/cheap, the trader will buy back the stok (a lot of permintaan), so the stok price will rise again or a technical rebound. You can learn the concept here: Stok Trading Concepts: Buy when you want to go up, sell when you want to go down.
So when the stok price drops a lot, it could be because the price has gone up high before or dropped after negative sentiments, then pasar participants will buy stoks that are already cheap.
Likewise, when there is positive news that can boost the JCI (for example, increased keuntungans, tax amnesty, increased economic growth and others2), then this can make permintaan (buying shares) stronger than suplai (selling shares).
In addition, stoks that form good (technical) price patterns will usually be used by traders as a reference to buy stoks, so that the stok price has the potential to rise.
You need to know, that stok prices consist of a collection of historical price movements, where historical patterns of stok prices are very likely to be repeated and used as a reference for pasar participants for trading.
Causes of falling stok prices:
The stok price is already expensive / up a lot. Also learn: How to Read Stoks That Are Going Down.
Negative news or sentiment
Stok price correction patterns
The cause of falling stok prices, which is the opposite of the causes of rising stok prices. So, if you are at a time where the stok price suddenly drops drastically (even though the JCI was stable before), then chances are that if the stok price is already expensive, there will be negative sentiments going on at that time.
Also read: 2 Causes of the JCI Down. So practically, there are no stoks that continue to rise. When the stok price has gone up high, the trader will surely realize the keuntungan (take keuntungan), by selling the stok.
When many are selling shares (many offers), then the stok price will tend to fall. Likewise, when there is negative sentiment, traders will temporarily ‘exit’ from the stok pasar (selling shares), so that many stoks fall.
Well, later if the stok price has gone down and is cheap, then surely traders will buy up the stok, so the price will go up again.
So the ups and downs of stok prices are a CYCLE that always occurs when the stok pasar is running.
The reason for the rise and fall of stok prices
The stok chart above shows the ups and downs of stok prices due to the influence of technical analysis and sentiments that occur, so that the stok chart fluctuates up and down.
Other Causes of Stok Prices Up and Down
There are other reasons why stoks go up and down. If you pay attention, there are often stoks that can go up and down by tens of percent in a short time, even though technical analysis does not show stok prices that are already cheap / expensive, and there are no certain sentiments.
This is due to the stok dealer games that ‘fries’ the stok, so the fluctuations in stok prices do not reflect the company’s health condition.
If you don’t know about stok dealers and the ins and outs of fried stok, you can studi my writings here: Gorengan Stoks.
SLEEPING SHARE (NOT MOVING SHARE)
In fact, not all stoks go up and down. In the stok pasar, we are also akrab with the termin