How does the stock market really work? I have a few questions?

I want to know how the stock market really works in terms of:





1. Investors Buying %26amp; Selling shares; how does the trading volume, here, of individual buys %26amp; sells affect a company's stock price?





2. How can you tell how many people/investors are buying or selling a company's stock in order to go long or short and put the odds in your favour - is there any specific technical analysis indicator that can tell you this, or what else can?





3. How does news affect stock prices?|||1. Individual investors are really only a small percentage of the volume traded daily. Big money like financial institutions, and mutual funds represent most of the volume and therefore are the ones who have a chance to really affect the stock price.





2. Because volume is an indicator of the amount of shares traded, there will be equal buying and selling. I know you want to find out if the sentiment is leaning towards selling off or loading up, and I do not know another indicator than the stock's price. If the volume is more than 150% of the average volume traded, then there is probably a reason someone is buying or selling, so watch the stock's price to indicate whether they're loading up or selling off.





3. News usually has a very large impact on the stock's prices. The type of news is directly related to the movement in price. So if its bad news, the stock will likely fall, if its good news the stock will likely rise. The problem with making a decision on news alone is that the stock does not always move the way you expected because of news. If a company says they have had a great quarter with high earnings, the stock may not even rise if they expected to have an even better quarter with higher earnings.|||1.Stock markets work on the principle of Demand and supply.


Stock price goes up if demand is higher than supply and vice-versa.


Trading volumes plays important role in identifying trend of particular stock.


2. Technical Analyst can give you long or short call on the basis of technicals of particular stocks,


There are many technical indicators, chart patterns available in technical analysis. Each technical analyst follows some combination of technical indicators, these combinations may vary from one tech. analyst to another tech.analyst.





Try google to find info on technical analysis. You can learn.





All the best,





trendpower|||1. Trading volume is like a truth detector....higher the volume....the more the price movement can be believed. Lower the volume...price moves are not to be trusted.





2. How to put odds in your favor...monitor price movements and develop a system for buying and selling based on the price movement of the stock. Example of a simple system. Buy S%26amp;P 500 position when it trades above 200 moving average....sell when it drops below.





3. News and stock prices...most news is already reflected in price of stocks by the time you read it. Price movements will show up before the news hits...elephants (big money) leaves footprints and you can hear them coming a mile away if you take the time to listen.





Good luck.|||if it is good stock nothing to be worried.





there are many tricks which share market people trap.





it is purely gambling.





1) when you buy the shares the value of the share decreases .





2)when you sell the shares sell at market price, if cote the price stock starts falling.