1) Basic
Why did GOTO surge 7% yesterday but drop 5% today? Why can BBCA, supposedly a 'great stock,' also fall? If you've ever been confused watching stock charts move like a rollercoaster, this article will explain it all.
Stock prices move up and down for one simple reason: supply and demand. If more people want to buy than sell, prices go up. If more people want to sell than buy, prices go down. It's that simple -- but the factors behind those buy/sell decisions are what get complicated.
Remember when a new iPhone launches and everyone scrambles to buy it? Prices jump above retail because demand is high but supply is limited. Six months later, the hype dies and prices drop. Stocks work exactly the same way -- prices depend on how many people 'want in' versus how many 'want out.'
Real example: BREN (Barito Renewables) skyrocketed hundreds of percent in 2023-2024 due to renewable energy hype. Everyone wanted to buy, few wanted to sell, price flew. Conversely, GOTO dropped sharply after its IPO as many investors were disappointed with its financials and rushed to sell.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorIs it normal for a stock to drop right after I buy it?
Totally normal! Even professional investors often see their positions go 'red' in the short term. What matters is whether your reason for buying the stock is still valid. If the fundamentals are still solid, stay calm.
What affects stock prices the most?
Short term: news, market sentiment, and rumors. Long term: company financial performance (earnings, revenue, growth). That's why Warren Buffett said, 'In the short run, the market is a voting machine. In the long run, it's a weighing machine.'
