Stocks Price Movement

       Have you ever experienced a shortage of chicken supply, meat supply or vegetable supply in the wet market? How about over-supply of the same? You will notice that when there is a shortage of supply, their prices tend to go up and when there is over-supply their prices goes down. That is the same in stock market where stock prices change every day as a result of market forces; meaning share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. 

       But what makes some people to like a certain stock and dislike the other stock? This comes down to figuring out what news is positive for a company and what news is negative. Are they having a good earnings? Of course if the company has good earnings, they are going to stay in business. Earnings of public companies are being required to be reported because analysts base their future value of a company on their earnings projection. If a company's results are better than expected, the price jumps up. If a company's results are worse than expected), then the price will goes down. 

       Earnings, new products from the company, new projects or any other good news about a certain company affects the appeal of its shares to stock investors. Some just speculate and buy a certain stock or base their decisions from their friends or brokers. Others might be buying the stock of a food chain where he or she always eat or his favorite bank or mall. But whatever your reason of buying your stock, you should always trade at your own risk as what Sis Krissy always says. 

       As for me I always read the business news, browse forums, ask my friends in KFAM (LIP thread aka Stock Investing Thread) and then I buy low then sell high. But in case I was able to buy my stock at a high price, I just lower down the average price during "correction". It is when more people are selling than buying causing some stock prices to go down because of profit taking. Example of that was when I bought my first shares of PX at 12.25, then the next time I bought it was at 10.75. When it still went down to 9.90 and 9.89 i bought again, thus my AEP went down to my current average price of 10.4144. Now the current price of PX is 14.50 meaning my profit is at around 38% if I can sell it at that price. If for example, I invested P10,000 on PX then my profit is P3,800 already. And you can't earn that from the bank even after 1 year! But what if more traders want to buy than sell their PX tomorrow? Aha! Of course the tendency would be its price will go up and I can sell it at a larger profit... We will see, I'll update my portfolio in my blog tomorrow whatever happens. Go PX!

       So do you want to invest in stocks? Think... Who wants to be rich? Hmmmm... ME!!!!

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