Welcome to the biggest stock market sell off! The DJA is Down 2000 points in one day!
What people in the media and or journalists don’t understand when they say sell off, is that it isn’t a sell off. Lets take a look at this?
There were no stocks sold from the point of the opening market in which prices were drastically lower than the last time they opened. When the stock market opens lower (this works the same as if it opens higher as well), it is not a sell off it is an instant devaluation, or if it opens higher, it is an instant appreciation.
The other thing that causes price collapse is simply not really a “sell off”. Who are the people who own these stocks selling to? Buyers. If anything, its a buy up at the lowest price. Put your bid in, and hope it goes low enough for you to buy it. The price of stocks change due to someone actually selling it to a buy at a lower price. What changes the price, is the rate at which they are sold at the lower price as opposed to being bought at a higher price. So while a stock may drop a dollar a share, it may have only took a few transactions to get there. It doesn’t mean more shares were sold at the lower price, it simply means it was sold to the lower bid in a more accelerated rate. Actually, more shares may be bought/sold at the lowest price throughout the day. It’s never a sell off, its always selling and buying and whenever someone says its a sell off, that’s the time to be buying. Remember folks, red = buy, green = sell and don’t let this fear mongering fuck you.