Comments on: The Mind of the Stock Market : Why Do Stock Prices Go Up? http://www.dojitrading.com/2009/07/the-mind-of-the-market-why-does-price-go-up/ Learn how to trade stocks & free daily stock picks Sat, 15 Jan 2011 15:23:16 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: Dojitrading http://www.dojitrading.com/2009/07/the-mind-of-the-market-why-does-price-go-up/comment-page-1/#comment-17 Dojitrading Sun, 05 Jul 2009 03:24:05 +0000 http://www.dojitrading.com/?p=719#comment-17 UrbaneGorilla, Thank you for your wonderful comment. =D I like how you compared the stock market to a flea market. I actually never thought of that before until you mentioned it now. Yes, there are many similarities between them, just like how you described in your comment --- our interest in toys, how much buyers will be willing to pay, and how much sellers are willing to sell them to us. Nice thinking! =) -Dojitrading UrbaneGorilla,

Thank you for your wonderful comment. =D

I like how you compared the stock market to a flea market. I actually never thought of that before until you mentioned it now. Yes, there are many similarities between them, just like how you described in your comment — our interest in toys, how much buyers will be willing to pay, and how much sellers are willing to sell them to us. Nice thinking! =)

-Dojitrading

]]> By: UrbaneGorilla http://www.dojitrading.com/2009/07/the-mind-of-the-market-why-does-price-go-up/comment-page-1/#comment-16 UrbaneGorilla Sat, 04 Jul 2009 19:46:05 +0000 http://www.dojitrading.com/?p=719#comment-16 To me the market is more akin to a flea market. In a flea market, there are a wide variety of items for sale at various prices. If you were looking for a toy you may find that toy for sale at a price that you want to pay. If, for some reason there is a flurry of interest in say Cabbage Patch Dolls, you might find that there is more interest in them and people are willing to pay more than they normally would. As people note the interest in the dolls, willing sellers might take advantage of the interest to make a profit. Some noticing the heightened interest will hold out for higher prices. That leaves the buyers to decide if there is a substitute similar toy, such as a Talking Elmo that can take it's place. You may find 'sympathetic' price increases in similar toys/stocks. Eventually, what happens is the price for Cabbage Patch Dolls becomes excessive, or its seasonality peaks (post Xmas). Sellers that held out for higher prices now have to drop their price. Late buyers will find that the price they paid is higher than the going prices for the same product new. If they don't have too much skin in the game, they might sell at a loss. And we have the down trend. Eventually, Cabbage Patch Dolls are on the 'Any item $1.00' table. You only have to have witnessed the Beanie Baby mania to understand the stock market. Thx for the article.. UrbaneGorilla ;=) To me the market is more akin to a flea market. In a flea market, there are a wide variety of items for sale at various prices. If you were looking for a toy you may find that toy for sale at a price that you want to pay. If, for some reason there is a flurry of interest in say Cabbage Patch Dolls, you might find that there is more interest in them and people are willing to pay more than they normally would. As people note the interest in the dolls, willing sellers might take advantage of the interest to make a profit. Some noticing the heightened interest will hold out for higher prices. That leaves the buyers to decide if there is a substitute similar toy, such as a Talking Elmo that can take it’s place. You may find ’sympathetic’ price increases in similar toys/stocks. Eventually, what happens is the price for Cabbage Patch Dolls becomes excessive, or its seasonality peaks (post Xmas). Sellers that held out for higher prices now have to drop their price. Late buyers will find that the price they paid is higher than the going prices for the same product new. If they don’t have too much skin in the game, they might sell at a loss. And we have the down trend. Eventually, Cabbage Patch Dolls are on the ‘Any item $1.00′ table. You only have to have witnessed the Beanie Baby mania to understand the stock market.

Thx for the article.. UrbaneGorilla ;=)

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