I am new to this area. Can someone provide some insights as to why when you buy shares the price immediately drops and when you sell shares that are rising, even though they are rising slowly, then suddenly rise faster when you sell them. This is very confusing. Can someone provide some insights as to how this works ?
MRTV, liquidity and an orderly market exists as Market Makers (in the old days these were "jobbers") set out their stalls to both buy and to sell shares. The price that MM's sell at is the "offer" price and the price that they will buy shares is the "bid". There is a small difference in the 2 prices known as the "spread". In the old days this was the "jobbers turn".
Market makers therefore exist ONLY to make a market in the shares and they are ONLY obliged to deal at the Normal Market Size (the average qty of shares per bargain over 3 months). If the bargain exceeds the NMS by 3x or greater, the market can delay the publication of the bargain for 1 hour so as to not cause alarm.
If there is considerable pressure from buyers, the price will generally rise to encourage sellers to take their profits. The converse happens if there are lots of sellers. MM's are permitted to be long or short without disclosing their position to the market.
Generally where there is plenty of competition for business (ie lots of MM's pitching for turnover) then the spread will be tighter than a market where it is lightly traded.
At the beginning and end of each day there is an auction to establish the opening (or closing) price and the first half hour or so can be very volatile. I have usually found it unwise to deal in the first hour or so of the market being open. Think of it as a load of barrow boys setting out their respective stalls - sometimes it is raining and not many people about and other times too hot so there is the whiff of decay. First thing in the morning is the traditional time to release news and it might take a couple of hours for the implication to be understood by those that can and do move the market.
I hope that this provides a little flesh on the way that the market operates. The private punter will not usually drive share prices except by concerted effort - Gamestop is an example - private investors can benefit from being on the coat tails of the huge merchant banks, pension and global fund managers. If Goldman Sachs for instance issue a buy note for something, there is a better than even chance that they will have already told their clients a few days ago and some of the heavy lifting will have been done. Momentum will do the rest.
Remember, it is only when you sell that you make any profit (or loss). Take losses early, run profits and it is NEVER wrong to bank a profit. Leave something for the next guy. Good fortune I hope entails for you.