Who sells or buy the shares?........please read the details below.?

Question

for example...if I would like to sell my shares when "prices r high"...... isn't everyone in the market will be with the same notion of selling it.........then who gonna buy my shares?

Answer 1

Theres always buy orders and sell orders. When you buy, someone else sold those shares that you'll be buying.

Not everyone will be selling the same stock at the same time that you want to sell it. If theres no buyers when you sell, then your order wont work out (as far as i understand it)

Answer 2

If you are referring to mutual funds, the fund itself is required to redeem your shares whenever you choose to sell them.

If you are referring to individual stocks, the stock market is balanced by the laws of supply and demand.  You can only sell your shares if someone is willing to buy them and subsequently, you can only buy shares if someone is willing to sell them.  There is almost always a market for shares- when you think you are selling high, there are probably other investors who think they are buying low.

Answer 3

that is the definition of 'market':  if everyone is selling when prices are high..  rest assured that high price is already history.  so don't expect to sell for the high price.  SUPPLY and DEMAND will determine the market price.  

2 strategies exist:

1.) Buy and Hold (ie: Warren Buffett) - Look at long term trends (10-20-30 years).  

2.) Active Trading - Look for big moves up or down and 'play' these on a daily basis (lots of time required = professional day trader) - Buy on the dip, set a auto-sell price when stock rebounds 5-10% and repeat (hopefully your stock does not continue dipping after you buy...  many will  ;)

I like the 1st scenario better.  It seems to remove more of the human/ emotional element from the equation.  Buy stock in companies you know that are SOLID companies with international exposure.  This way you get the security of a stable company but with the growth potential of emerging/ developing markets.

Answer 4

I agree with much of the above.  

Another way to look at it is: who needs money now and who needs it later?  If you need to pay your kids' college tuition, you might need to sell your stock now, even though you suspect it will be priced much higher in a year.  And if you are in your 30's and earning good pay, starting to put money aside for retirement in 30 years, you might want to get into stocks for the long term payoff and not worry so much if the market is at a short-term high right now.

No one knows for sure what the market will do, and people will have different ideas about what price is "high", "low" or "fair".  But also, people will have different needs: some will need cash now, and others will have extra cash that they want to invest for later.  The equilibrium between all these needs and views is what sets the stock price.