These technical indicators are only explicit means to judge the future trend of stock prices. What are the factors that affect stock prices? So in this article I will explain the factors that cause stock prices to change. After understanding these factors, to a certain extent, we will analyze the risk of loss caused by these factors can be avoided, let us understand the specific content of these factors below.
In the following content, we will mainly talk about five factors: economics, politics, the company itself, industry market, investor psychology and other factors. We also need to talk about the specific impact of some factors on stock prices?
Mainly speaking from two aspects, for the stock market we often call it a barometer of the social economy, mainly because the stock market changes with changes in the economic cycle, but the stock market changes generally earlier than Economic changes are mainly due to the degree of investors' attention to the entire market. Once they find signs of recession in the economic market, stock prices will fall.
- Economic prosperity period: Generally, at this time, the overall trend of the entire stock market is rising.
- Economic recession period: vice versa, this is the overall market situation of the stock market is not very good, in a state of decline.
The components of these economies are: financial environment, country.
And if the country’s fiscal situation causes greater social inflation, the stock price will fall. On the contrary, if the fiscal expenditure increases, the stock price will rise.
In other words, those major national political events, such as changes in national leaders, actions, etc. The recent Trump Twitter incident is a typical case, which affects the entire United States to a certain extent Changes in the stock market. Therefore, for investors in the market, it also means that retail investors must pay more attention to social information, policy promulgation, etc., and they can pay attention to several financial websites such as Winner Fortune.com.
The company's own factors in the market:
Listed companies issue stocks in the market to raise funds, and to a certain extent the value of stocks determines the stock price, so the initial influencing factor is the company itself, generally the company's operating performance level , Your own asset credit, the setting of dividends, external development prospects, etc. can affect the company's stock price changes.
Industry market factors:
Different industries have different initial development prospects in the market. Generally, companies with better stock prices in the market are industries with development prospects nowadays. In general, new industries have appeared in the market and have good potential. The stocks of any company in this industry are generally promising. Investors in the market have certain types of intentions, investment directions, and arbitrage behaviors at different stages. The most likely to cause an imbalance in the relationship between market supply and demand, the stock price will fall due to oversupply in the market.
Investor psychological factors. Because there are many retail investors in the domestic market now, and some experience is not too sufficient, it is easy to blindly follow the big players in the market, snap up or sell in large quantities, and finally cause losses. This leads to an imbalance of mentality and emotional changes, which will eventually lead to a sharp rise and fall in the stock market.