Trading 101: Common Events That Impact The Market
The stock market is a very complex, ever-changing system composed of a variety of investors making decisions that impact the overall health of the landscape for every investor. The market values can increase or decrease at any moment’s notice. At TradeUP, we are dedicated to providing the best mobile trading platform to keep you in the loop, allowing you to seize investment opportunities anytime, anywhere, and at low cost. Before jumping into the stock market, it is important to understand common events that can cause a great impact on your investments. Keep reading to learn more and download our trading app today!
Supply & Demand
One of the most common events that impacts the stock market is supply and demand. It is the difference between what providers are supplying and what consumers are demanding. Think back to the early days of COVID-19, consumers were purchasing toilet paper and other supplies in large quantities and providers could not keep up with demand, creating supply shortages and higher prices. The stock market works the same way: if there are more buyers than sellers, the buyers will bid up stock prices to encourage the sellers to sell more. If there are more sellers than buyers, the stock prices will go down to create a more enticing buy for the buyers.
War or Other Conflicts
World events, such as war, natural disasters, terrorism attacks, and even civil unrest have a large impact on the stock market. People are generally concerned when large events like this occur, and fear drives their purchase tendencies. While people may trade less, and invest in assets with less political risk, military stocks and other supply stock prices tend to increase in times of war.
Internal Developments Within Companies
Mergers and acquisitions within a company have a direct impact on the company’s stock prices. Even the development of a new innovative product or service or the hiring or firing of company executives can influence the company’s overall stock prices. Unexpected changes have the most potential to influence these prices in a more drastic manner
Impact of Exchange Rates
Foreign currency exchange rates have an impact on the price and value of overseas stocks. Exchange rates, like the stock market, are affected greatly by supply and demand, along with purchase price parity, news, and world events that may be difficult to predict.
Investing in the stock market is a risk, but can pay off with big rewards. Having the right mobile trading platform in the palm of your hands can help you stay on top of any stock market trends. Start trading today with TradeUP!