I have only a basic understanding of how stock markets work, so I’m looking for a resource that can help me figure them out a little better.
There are a couple of specific questions nagging at me at the moment:
1. Do stocks normally open higher than the previous days close and why?
2. What’s going on when there is movement of a stock price (both up and down) but relatively few shares are being traded?
If anyone can point me to a good source for answers to such questions, I’d be thankful.
UPDATE: Bryan Murley has helped me with the first question. But his answer raises another question: is there a way to track after-hour trading (ie. share volume, etc.)?
UPDATE II: After doing a little research on the second question, I’ve come to this understanding: up or down movement of a stock, with a relatively low volume of trades, makes changes in price fairly meaningless. Movement of shares, with a large volume of stock (compared to the average volume) being traded, would be a better indictor of how the stock is trending. Do I have that right?