Is professional buying/selling the most powerful factor for determining the direction of stock?

Question

Is it so much powerful so as to impart an uptrend to a stock that was actually following a downtrend in a bear market (and vice versa) ?

Answer 1

Only sometimes.

The main factors that affect price movement are large players, speculation, supply/demand, day to day emotions, and unexpected events.

At any given time, these are in effect to varying degrees. Sometimes the supply/demand is the heaviest factor. Other times, professionals. Other times, the other stuff.

There's no hard and fast rule that any one of these is "always" the prime mover.

But usually, the biggest players are the ones making the most correct decisions, most of the time. Which means there is a sort of "delayed" reaction in the markets. They usually buy or sell before the big move occurs.

Answer 2

I think you mean to say institutional buying/selling.

Yes institutional buying/selling may lead to a reversal in the trend of the stock as a bulk deal will always be done by them

Answer 3

Fundamentals will determine the overall trand of a stock. Technicals will determine the short term and influence the mid-term fluctuations of a stock. So to answer your question, it may affect it for day trading. But "forcing" an upwards surge in a mining company today, while the gold prices are plummeting is a futile attempt. We had two days last weeks (Tuesday if I recall) where money flowed from financial to miners for 48 hours. It caused a small bull trap. By the end of the week all mining companies had lower lows.

Your strategy should depend on your investment type (i.e. value trader, technical trader, day trader, long-term trader, etc...)