Morning Friends!
As a parent of teens, I often stress the importance of time in the market, and no, not the ‘stalls’ kind! Investing isn't just about charts and numbers, it’s about people! And to become a great people person, start investing early!
Stock movements are driven by confidence, opportunity, and market dynamics; who’s buying, selling, and how much is flowing. In an auction, if lots of people want the same rare item, the price soars. If there is no interest, the seller drops the price. That’s the stock market in a nutshell!
However, when big investors trade billions, they can’t just buy a stock outright without prices going up, so they rely on liquidity; buying or selling without changing value too much. That’s where order flow, market sentiment, and hidden liquidity zones come into play.
• Order Flow is like going to a concert!
If loads of people rush for tickets (buyers), the price moves up. If they don’t (sellers), the prices drop. Watching this alerts traders to who’s hot and who’s not.
• Market Sentiment is the pub chat!
News, socials, and even local talk shape feelings. If everyone’s panicking, stocks can get cheaper (bargains!). If they’re hyped, prices may be inflated and due for a fall.
• Hidden Liquidity Zones are the market’s coves!
Ever notice how a stock price just bounces around the same level? That’s usually where the big guys are making their moves quietly. Take current Brexit and trade tensions, some traders are tucked away in these 'calm secluded waters' rather than riding big waves.
So next time you hear about ‘market volatility,’ don’t think numbers and charts. Instead, understand market psychology, ask who’s buying, selling, why, and where!
A final note for those taking the plunge:
"Investing is like planting a tree. It will sway and bend in the wind, but over time, will grow bigger and stronger!"
I don’t impart financial advice, but start small, stay curious, and remember knowledge is your best investment!π‘π
Take Stock,
Tris
#mindsetiseverything #passiveincome #investingforbeginners #plantatree #dailycommute #entrepreneurs #stocksandshares #knowledgeispower #stockmarkets