How the Stock Market Really Works

If you read about how to make money on the stock market, it doesn’t work

How orders are made

  1. Take an order from the list, or
  2. Add a new order to the list.

What changes the price of a stock

How does the success of the company affect the price of its stock

  1. Paying a dividend, or
  2. Buying its own shares (called a ‘buy-back’)

Game theory

  • Everything you read about how to trade stocks is a lie
  • Stocks are bought and sold by accepting an order from a list or adding an order to the list and waiting for someone else to accept it
  • The price of a stock is a standoff between buy and sell orders
  • Shares are not really connected to the company’s performance, except by belief
  • It’s all just a massive psychological game of predicting what everyone else will do next
  • Each transaction is an exchange to or from USD and another symbol
  • All transactions must be agreed on by both parties

Do what is obvious to you



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Alasdair Forsythe

Alasdair Forsythe

☯ Magician ⚔ Sorcerer ☀ Shaman ☤ Alchemist ♚ Baron of Blackness