Why is it that some stocks make huge moves? What are the mechanics, reasons, and the rationale behind these big moves? Today, Tim Bohen is breaking it down for you.
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First, you need to understand the background, the history, and the mechanics of why these stocks move. Second, here are the terms you need to understand: float, float rotation, supply and demand. Get ready to learn!
Stocks that spike and jump in percentage quickly are called low-float stocks. The float refers to the freely tradable shares of the stock. That’s the supply. Stocks often move because of supply and demand.
The freely tradable shares of the float are shares that aren't locked up or held by insiders. Those are the shares that are recycled throughout the trading day.
So why do we care about that? Think about basic economics. When there’s a smaller supply, there can be more demand. And the price can go up fast. That's why we look at low-float stocks.
You also need to understand float rotation. There needs to be an influx of new buyers, sellers, and somebody willing to bid up — or there's no price movement. Here’s an example: If the stock is publicly traded, has a million shares, and has traded two million shares on the day — that's two times the float. That's called float rotation and you what you want to check it.
Now, have you ever heard of the ‘greater fool’ theory?
It’s the idea behind buying a stock only because you believe that there's a greater fool out there who’s willing to pay more for it. You don’t buy it for any other reason — like thorough research based on fundamentals or future prospects.
That concept can push share prices up if enough traders jump into a stock for that reason alone. So when there are one million, two million, three million, or four million shares traded per day, there's a good chance that that stock will continue spiking throughout the day. But watch out — those gains aren’t based on anything real.
It’s also a key reason to study hard. You want a solid understanding of supply and demand, float, float rotation, and why these stocks move before you try to trade them.

#StocksToTrade #StockPrices #TradingTips
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.

By Stock Chat

where the coffee is hot and so is the chat

31 thoughts on “What makes stock prices move up down?”
  1. Avataaar/Circle Created with python_avatars American God says:

    How do you determine how much tax you pay on day trading? I’ve seen ppl trade with 30,000 thousand, buy 10,000 in stock, wait for it to make a couple hundred, then sell it. That has to have massive tax implications. They make that money in literally a day.

  2. Avataaar/Circle Created with python_avatars Davan S.M. says:

    Excellent stuff

  3. Avataaar/Circle Created with python_avatars Gordon Rumsey says:

    Why does volume goes up an prices goes down

  4. Avataaar/Circle Created with python_avatars chukwuekwu samuel says:

    Nice outfit

  5. Avataaar/Circle Created with python_avatars FukuMoneY says:

    Another video lesson down

  6. Avataaar/Circle Created with python_avatars Tanwir Naqvi says:

    Hi Tim I like your simple and honest opinions.please it coming. And thanks

  7. Avataaar/Circle Created with python_avatars Natalie Daniels says:

    Thanks. This video is so helpful

  8. Avataaar/Circle Created with python_avatars Gishan J says:

    director buying

  9. Avataaar/Circle Created with python_avatars Luke Drown says:

    New to trading, great info! My question is, what would be considered a “good” percentage of volume to total float to use towards a prediction of a spike in the near future?

  10. Avataaar/Circle Created with python_avatars Coach Ken says:

    If “market makers” can manipulate a stock price to keep it above $1, are they also manipulating prices at $10, $100, or $1000? Can market makers cause a stock to break support or resistance levels? Do market makers also produce news articles, or other catalysts?

  11. Avataaar/Circle Created with python_avatars juko j says:

    Greater fool theory 😳🙄🧐. I better keep my money an index fund otherwise. i have a feeling i will be the greatest fool and i will be left holding the bag!

  12. Avataaar/Circle Created with python_avatars Emmanuel A says:

    How a stock price dropped from $15 to $11 in a minutes ? Wafu 06/11/20

  13. Avataaar/Circle Created with python_avatars Joseph Balliro says:

    supply and demand is another aspect of the process you gotta pay attention to thanks tim

  14. Avataaar/Circle Created with python_avatars javaughn thompson says:

    Very limited info

  15. Avataaar/Circle Created with python_avatars JeanPaul Antonio Towers says:

    Thank you Tim B

  16. Avataaar/Circle Created with python_avatars Rey G says:

    Can you go more into detail about the fine line between being discipline cutting losses and having patience and letting the pattern/plan play out?

  17. Avataaar/Circle Created with python_avatars Rey G says:

    Love it! Back to basics is always nice !

  18. Avataaar/Circle Created with python_avatars Travis says:

    On StocksToTrade is there a way to indicate reverse splits on the chart?

  19. Avataaar/Circle Created with python_avatars Abe says:

    I have a question: What are the deciding factors of whether or not a stock will break resistance or bounce off resistance? And same for support; whether or not a stock will crack support or bounce off support?

  20. Avataaar/Circle Created with python_avatars Артем Заянчковский says:

    Thanks!) Sometimes back to origins is so helpful!

  21. Avataaar/Circle Created with python_avatars Ricrdo Mnzo says:

    Video is very useful! Thanks Tim for helping us understand, really got a lot from this!

  22. Avataaar/Circle Created with python_avatars Jason Okeefe says:

    Love the video! My question would be what kind of news events make the best catalysts for intraday plays, and/or second day continuation plays ?? Thanks for all your help!

  23. Avataaar/Circle Created with python_avatars magdiel matias says:

    This video was gold! Thank you so much for posting

  24. Avataaar/Circle Created with python_avatars Chris M says:

    So in theory, if you cornered the float. Do the potential buyers bids affect the price? In turn allowing you to sell at a higher price?

  25. Avataaar/Circle Created with python_avatars Dizzy Cartoon says:

    Lol simplify haha I had to re-watch like 10times to understand hahaa I swear my brain is getting information overload 🤣

    Ohk thanks Tim watched and noted x

  26. Avataaar/Circle Created with python_avatars Sam A. says:

    Thanks Tim these videos help a lot

  27. Avataaar/Circle Created with python_avatars Mer Ka says:

    Yout really make it so simple to understand. Thanks

  28. Avataaar/Circle Created with python_avatars Ben Barksdale says:

    Great video! Could you make one on taxes for day traders?

  29. Avataaar/Circle Created with python_avatars Steph A. says:

    Thanks. Pretty informative.

  30. Avataaar/Circle Created with python_avatars Duke and Duke says:

    I’m first

  31. Avataaar/Circle Created with python_avatars StocksToTrade says:

    Do you have a trading related question? Let us know so we can cover it in an upcoming video!

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