Is it actual people or is this a triggering of mass computer trading software?
Wouldn’t it be great to have that disposable income to invest at this time.
mikes-marketing-tools.com
Simplistic question-When the stock market panics and sells off, who are buying the shares?
Is it actual people or is this a triggering of mass computer trading software?
Wouldn’t it be great to have that disposable income to invest at this time.
mikes-marketing-tools.com
8 Responses
April 28th, 2009 at 7:32 am
People are buying them - you know, the one’s with bigger ones than you and I — they see the sell-off as a major sale on stocks. They are looking for deals and a sell-off provides deals if you have the money to buy in during the sell-off.
April 28th, 2009 at 3:50 pm
Good question!
For every buyer there is a seller. When you get tired of your stocks, someone would love to own them. It is a market.
When you take profits, someone else is willing to ride them higher.
Yes, actual people own stocks.
May 1st, 2009 at 4:41 pm
people who intend on holding long term when the stock rises for profit
May 4th, 2009 at 9:26 am
not i said the cat.
I’ve tried to tell people they should not being buying last weeks rally.
See my post history for more. Add me to read posts.
May 4th, 2009 at 11:57 pm
Huh… Let me tell you a story.
When I was in my undergrad school I used have a junior friend and who used to do stock trading things.. I never did that in my entire life though.
Anyways there was a sudden crash on the market and I was just chatting with him about that. He seemed very upbeat. I asked him didn’t he loose a lot of money yet? He answered he always makes money when the stocks go up as well makes money when the stocks go down. :-0
Then the million dollar question, how the hell you make money when the stock goes down. The answer is, you sell your stock today with relatively higher price today and buy the same within couple days with lesser price as the stock price went down and you keep the difference as cash and you still own the same amount of stocks. STRANGE ISN’T IT? Yes those greedy people always have a way of interpreting things in their own favor.
GOOD LUCK
May 8th, 2009 at 2:03 am
A large portion of the buyers are large pension funds and endowments. Often these fund keep a long-term view and stick to a particular asset allocation - selling off an asset class as it gains and buying another asset class as it looses. Many of these funds re-balance on a daily, weekly or monthly basis.
May 9th, 2009 at 3:53 pm
Stocks are bought by actual people, but there are computerized sells. They are meant to keep the buyer from losing too much money, so they set an automatic sell point in case the stock goes down. That is part of the reason for the massive drops, after the initial large drop the computer sells kick in. This cycle can continue until 3:00pm on trading day.
When you sell the stock is instantly sold, and when you buy the stock is instantly bought. I don’t know if there is a middle man, or if they can just line up buyers for each seller, and visa versa.
May 12th, 2009 at 1:07 am
Fund managers are typically the big players in the stock market. Individuals don’t have nearly as much clout. Many people and fund managers will buy during a selloff, especially if they believe a bottom is near or that they can profit from a bounce. Market makers or specialists control the stock to some degree.
In the United States, the New York Stock Exchange (NYSE) and American Stock Exchange (AMEX), among others, have a single exchange member, known as the specialist, who acts as the official market maker for a given security. In return for a) providing a required amount of liquidity to the security’s market, b) taking the other side of trades when there are short-term buy-and-sell-side imbalances in customer orders, and c) attempting to prevent excess volatility, the specialist is granted various informational and trade execution advantages.
Other U.S. exchanges, most prominently the NASDAQ Stock Exchange, employ several competing official market makers in a security. These market makers are required to maintain two-sided markets during exchange hours and are obligated to buy and sell at their displayed bids and offers.