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View Full Version : Who pushes the share price up/down.



bob.not.a.builder
25-09-2008, 12:22 AM
Is there a guy sitting on a computer pushing up/down share prices based on market sentiment? Or is it done through complicated computer algorithms? Sorry if this is a stupid question.

Grand Uber
25-09-2008, 06:10 AM
Its set by the buyers and sellers, the price people are willing to buy and the price people are willing to sell at determines the price of the share.

Its like an auction, which can go down in price aswell as up, with no closing date.

JulianG
25-09-2008, 09:33 AM
Bob, the attached image shows what the auction looks like.

It shows buy and sell conditional orders - the buyers and sellers are waiting for a price.

Many other buyers and sellers will place an order at what the market price is offering.

This pushes the price one way or another.

trackers
25-09-2008, 09:43 AM
Yip its like a stalemate between buyers and sellers until someone (anyone) breaks it by buying off the lowest seller, or selling to the highest buyer... Rinse and repeat by lining up the new highest buyer and lowest seller and seeing what happens.

Phaedrus
25-09-2008, 10:35 AM
Who pushes the share price up? Buyers.

Who pushes the share price down? Sellers.

Movement of the share price (or lack of it) simply reflects their relative strength.

Year of the Tiger
25-09-2008, 10:55 AM
Who pushes the share price up? Buyers.

Who pushes the share price down? Sellers.

Movement of the share price (or lack of it) simply reflects their relative strength.

I usually add these sentiments to each group...

Who pushes the share price up? Buyers. (Desire)

Who pushes the share price down? Sellers. (Urgency)

YOTT

peat
25-09-2008, 11:40 AM
greed vs fear

huffer
25-09-2008, 11:53 AM
Bob – perhaps this will help.

http://www.directbroking.co.nz/directtrade/static/quickquotetutorial.aspx

> scroll down to "QUICK QUOTE - VIEW: DEPTH"

neopole
25-09-2008, 12:27 PM
i wonder how many buyers and sellers use sharetrading software?
as buy signals apear the people buy........ as sell signals apear.... they sell.

seems to me, that most traders follow the direction of their software signals.

so you could say, that a very small handfull of people can place a buy or sell and trigger a buy or sell on thousands of peoples share trading software.
for instance......... NZO is linked to the price of oil, whether it produces oil or not!!!
look at a 3 year chart..........
this just shows that most traders are just punters following a piece of software relying on historical data. this is how trading waves are formed, bubbles and crashes.
those that get rich are the ones that dont follow the herd... or trigger the herd into a direction.

It used to be the taxi driver comments that spelled the end of a bubble, now its a ping on your trading software......... trouble is......... all the pings go off at the same time, as with the taxi driver it takes a few weeks for the dump orders to go out.

so Bob, a very good question

JulianG
26-09-2008, 08:25 AM
Well it doesn't work like that because much of the action is off market.

When an institution buys or sells they tend to deal off the market which adjusts the price.

Or they will drip feed the order into the market through several brokers to average out the price.

The size of these orders have a much greater effect than computer trading.

Dr_Who
26-09-2008, 10:54 AM
Rumour has it that at the end of year accounting, the institutions usually pushes the prices up or/and down to window dress their portfolio.

JulianG
26-09-2008, 11:14 AM
Best ask seccom about that. We're purely retail. :)

Dr_Who
30-09-2008, 12:49 PM
Who pushes the sp?

At the moment it is FEAR!!!