The Reason Why Stocks Swing So Wild

Lesson 1.3: Stock Market Intro

Why do stock prices swing wildly day after day?

Imagine walking into your local store to buy your favorite shampoo. Yesterday it was $10, today it’s $5, and tomorrow, it might be $20. Confusing, right? The stock market feels just like that. One day it’s up 5%, the next it’s down 10%. What’s going on behind these constant shifts?

The answer lies in something simple: demand and supply. But here’s where it gets interesting—demand and supply in the stock market aren’t driven by cold, hard logic. Instead, they’re fueled by raw emotions: fear and greed.

In this post, I’ll show you why these emotions make people buy and sell at completely irrational prices, what triggers these emotional swings, and how understanding this can help you profit while others panic. You’ll hear about real-world examples—like the crash during the 2020 pandemic—and how investors turn market chaos into massive opportunity.

Plus, in later lessons, I’ll reveal tools every smart investor needs to gain an edge over the crowd. Curious about how to calculate the true worth of a business or how to sense the market’s emotional state?

Want to learn how to calculate intrinsic value or read market emotions like a pro? Join as a paying subscriber and unlock the full potential of your investing journey.

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