Why the stock market goes down

Discussion in 'Stock Market' started by statusquobuster, Mar 5, 2009.

  1. statusquobuster
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    statusquobuster BANNED

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    Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

    Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

    These are optimists and realists, while almost everyone selling stocks are the losers.
     
  2. wimpy77
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    wimpy77 Member

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    i agree with that i think long term that market will rebound but guys like cramer want it now.
     
  3. Toro
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    Toro Diamond Member

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    Yeah, I agree with this. Valuations are at levels that haven't been seen in decades.

    Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.

    The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.
     
  4. dilloduck
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    dilloduck Diamond Member

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    Intersesting--stocks go down because people buy them ?
     
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  5. DavidS
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    DavidS Anti-Tea Party Member

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    :lol:

    I was going to say something, but I didn't want to be rude to the n00b. I've already gotten so many red reps for doing that... :eusa_whistle:
     
  6. wimpy77
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    wimpy77 Member

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    sometimes noobs need to be taught a lesson
     
  7. Immanuel
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    Immanuel Gold Member

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    Basically it is that age old... first thing you learn in econ 101... supply and demand. When more people want to sell the stock than want to buy it the price goes down. As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls. Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

    Quite simple really.

    The problems stem from trying to out guess the buyers and sellers. :)

    Immie
     
  8. dilloduck
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    dilloduck Diamond Member

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    please inform the noob
     
  9. xsited1
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    xsited1 Agent P

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    I wish I had taken your advice. I took my money out of the stock market when the DOW was around 13,000 (when the Democrats took control of Congress) and put it in bonds. Just imagine how much money I would have made had I kept buying stocks since 2007. :cuckoo:
     
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  10. editec
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    editec Mr. Forgot-it-All

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    The rich can go long.

    That's how they got rich and how they get richer.
     
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