What are the main causes of the rise and fall in the stock market?

What are the main reasons for the rise and fall of stocks? Next, I will analyze it layer by layer to show you the reasons for the rise and fall of the stock market. 1. Capital inflows and outflows

First of all, let’s talk about the most essential and direct reasons for the rise and fall of stocks. The most essential reason for the rise and fall is the inflow and outflow of funds. If a stock has a steady stream of funds to buy it, its stock price will continue to rise. If there is a steady stream of funds to sell it, then its stock price will continue to fall. Therefore, the main reason for the rise and fall of stock prices is the inflow and outflow of funds. 2. Why do funds flow in and out

Why do these funds flow in and out? When will he buy in? When will it be sold? Usually when an investor thinks that a stock will rise, he will buy it. There are various reasons why investors think it will rise. For example, the reason for the news, or the reason for its stock price, or the company's performance, etc. That investor believes it will fall, and the reason for selling it is basically based on these points.

For example, if the price of coal continues to rise, it will cause investors to buy coal stocks, causing coal stock prices to rise. If, on the other hand, the price of coal continues to fall, investors will sell coal stocks, causing coal stocks to fall. 3. The result of the convergence of various ideas

So the inflow and outflow of funds is the result of the mixture of investors with different ideas and ideas. For example, short-term players mainly look at the market sentiment; mid-term players mainly look at the theme of this stock; long-term players mainly look at the value of the company or industry. When more than half of these funds believe that this stock or sector should rise, then it will rise. Otherwise it will be the opposite result.

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