Working principle of stock market

Working principle of stock market 

The stock market works on 2 principle

•  The first principle is strong players and weak players
• The second principle is to know as crowd behavior

Strong players always make profits after buying at a lower price from weak players and sell it at a high price to weak players this is the stock market cycle.

Crowd Behavior

• If there is any bad news about any stocks weak players start to panic and start selling their stocks. If at that time strong players start absorbing the selling pressure from the weak players' stock will move up and discount the news event. But if strong players also start selling the stock the downtrend will be very strong.
• After a big up move in stocks general crowd of the stock market start to rush for buying the stock usually on good news but the strong players are selling their positions to the crowd and stock never touches that level again.
• Strong players always isolate himself from the crowd behavior he never becomes the victim strong player knows the working principle of the stock market. He believes in his analysis. He ignores the good news or bad news - tips from stock market gurus. 
• He is there to buy when there is bad news about the stock market and start selling when the crowd starts buying in the stock market.
• If you buy when other professional traders are buying and start selling when other professional traders are selling to the crowd of the stock market and follow the same rules you will be a good trader