eli5: How do stock traders know when to buy and sell, is it pure guessing or is there factors that affect it?

Question

eli5: How do stock traders know when to buy and sell, is it pure guessing or is there factors that affect it?

In: 1

Answer 1

It’s a combination of:

* Pure guessing;
* Past experience;
* Data that you can extrapolate from;
* And pure guessing.

Sometimes it’s also getting insider information that isn’t public knowledge yet. This is illegal, but no one cares.