Business Description
The law of supply and demand is a theory that explains the direct relationship between the availability of a product and its price. A product that is high in demand tends to have an increased price, while a lower demand could drop the product’s price.Even with all its complexities, the same law is the basis for determining a stock price. A company’s share experiencing higher buying pressure will pump up a share’s price, while a selling pressure will do the opposite.
The best way to go about trading in stock markets is often predicting a buying pressure or a selling pressure, otherwise known as trends. Foreseeing a trend or trend reversal can help you make use of the same to make a profit.
Stock cource