In the world of today it’s hard to stay on top of current events. News is available 24 hours a day on television, computers, and smartphones. And even if you have investments that are primarily in one country, they can still be affected by global and local events.
In general, stock prices change every day based on supply and demand. If more people want to buy a stock than sell it, the price will go up. If more people are willing to sell than buy a stock, the price will go down. Understanding this simple concept is a big part of being a successful investor.
The direction stocks are moving can also tell you a little about how investors think the economy is going. But it’s important to remember that the stock market is not the economy. The stocks in the market are a collection of different businesses that come from many different industries. The direction the index is moving can give you a view of how the investment community feels about the future of these businesses.
About the Author
