How to Understand the Stock Market

I have been asked, I’ve been got this test, this quest is like you know I feel like Frodo from Lord of the Rings trying to explain "How does one understand the stock market?" Well all the volatile and all the stuffs that we've seen especially most recently very, very difficult thing to do. The best way I can go about explaining is, is this, something goes up, stock will go up, gold to go up, bond will go up whatever it may be when there's more buying than selling, supply and demand pretty simple right? The inverse is true as well, the inverse means that there's more selling than buying supplies is going to go down, you know I got a kick out a pick out the wall street journal on a given day and then say stocks were up for blah,blah,blah reason, stocks were down for blah,blah,blah reason, that’s not necessarily too, they're actually giving there opinion on why stocks are up or stocks is down, the only reason why they are up or down is because supply and demand of what I told you before.

For example, you know recently we had oil prices go up to about $150 per barrel and any single time you know any type of storm, a thunder storm would happen to pop up anywhere is Florida, the price oil be at 5 bucks, somebody get kidnapped in Nigeria oil will be up, well in a very short period of time we had two major hurricanes passed through the gulf of Mexico, actually shutdown the platforms and oil went down. Sometimes it doesn't need to make any sense at all, the only thing you need to understand, it goes up more buying than selling, it goes down more selling than buying.