If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. With that said you would not buy a stock with low Volume / demand. 

Stock prices move up & down due to supply & demand, but what cause changes in supply & demand ?

This can be a combination of things, so here is a list of things that may lead to a stock moving up or down :

Key Takeaways :

  • Stocks move up and down because of suply and demand.

  • Prices go up when there are more buyers than sellers.

  • Prices go down when there are more sellers than buyers.



Analyst Upgrade

Earnings Beat

High Volume / Demand


New Product/Service

Breaking News



Analyst Downgrade

Bad Earnings

Low Volume / Supply


Major political or economic news

Profit Taking


With all of this said, its still hard to predict whether a stock is going to move up or down in reaction to various events. Thats why the stock market is best for those who are self disciplined & follow a strict Trading System so that your able to ride out storms, rather than panic selling whenever your stock position dips.