Beginner questions - what influences the rise and fall of...

I think Choc is trying to get Vielgeld to think about the mechanics of why price changes, how and why liquidity is provided, what happens when that liquidity is consumed, how different order types play a part, you know, the mechanisms that contribute to the continuous auction process.

As Vielgeld trades FX pairs off charts, he is not likely to appreciate the driving forces in the same way that others who use the DOM/T&S are used to.

@Charlie7 - it is difficult to know exactly why price moves around the way it does. However if you have a LOT of money at your disposal, you can engineer situations in the market on a particular security and profit at the expense of the ill-informed.

It ultimately boils down to where as a participant, you think value is in relation to the future and it's generally easier as a retail trader to follow the money rather than think you know what institutional money is going to do.

Don't know about this stock.....but on the big stocks there are often short sellers.
So...When bad news comes out, prices drop and short sellers might want to close out their trade, to do this they have to buy back the shares.
Their action is often what drives shares up after a plunge.

Hi charlie7.

You have posed a completely rational question in the western and scientific traditions. You have observed something happening and wish to rationalise why it does so.

But beware. The objective here is to make money, and more profit is better than less. Will understanding more about share prices make more profit or will being a better observer?