Misconcept: Buying Demand and Price Going Up

Misconcept: Buying Demand and Price Going Up

Common sense says "when demand is greater than supply, prices go up. When supply is greater than demand, prices go down."

Sounds simple, doesn't it?

Yes and No.

In many places, perhaps only other than on the stock market, the answer is yes.

On the stock market, however, it's NOT necessarily true.

There are always a buyer and a seller on a trade. The puzzle comes with who demands.

A buyer may NOT choose to pay higher price on stock shares, instead, drive the price down may result in more efficient accumulation to satisfy the demand.

The point is: it's not in terms of a single trade, which abides by the demand/supply law strictly, instead, it's in terms of a collection of organized trades which may perfectly deny the law in the whole.

The questions are:

1, Who can do it?
2, How does he do it?
3, And why does he do it this way?

IN FACT, ONLY BY THIS WAY COULD THIS BUYER BUY LOW AND SELL HIGH STATISTICALLY AND PERIODICALLY.

The opposite part of the puzzle:

A seller may NOT choose to sell on less on stock shares, instead, boost the price up may result in more efficient distribution to clear the supply.

The above three questions remain.