Understanding the market
In order to predict the market, you need a thorough understanding of market trends. While it is impossible to predict anything specific, with proper knowledge and practice, you can reasonably guess the way in which stocks will go. To do this, take some courses online.
Find someone experienced in the stock market and its trends to guide you, or look for different directions on your own and learn how to analyze any patterns you see.
Stock market forecasts based on fundamental analysis
The company’s key analysts are checking on the stock to be traded. They get all the possible data figures for that company, they ask about the directors and major shareholders, they learn about the products or services they produce, and they keep an eye on the news, not just finance, but information about their business line, and more.
Based on this information, analysts predict stock movement for the next few days, weeks or months.
Stock market forecasts based on technical analysis
Technical analysts look at the charts and direct the trends on the chart by joining the high-low points as they incorporate formulas that produce different calculations based on the previous highs, lows, and volumes. Lines can be drawn to determine support and resistance levels.
This is the basis for predicting the share price depends on technical analysis. Many information such as corporate profits, news and directors are of no value to technical traders.
Stock market forecast based on software training
Predicting the stock market with the latest software is the possibility of today with all the advances in technology.
Some stock market software packages have the ability to import data over the past weeks, months or years of security, and based on formulas and equations, using complex algorithms, can train themselves on this data and on stock price movement.
The result of this is the prediction of the future share price. These packages usually work on technical information, but some are now also providing basic analysis as part of the training and forecasting process.
Predict the stock market on the basis of momentum
Many traders use the so-called “second level” data to establish their trades. While the stock market is open, the trader can see the list of buy orders from one side and the list of sales orders on the other.
The price and volume are displayed along with other information, as experienced traders measure the momentum of the stock and carry out short-term trades, which usually take only a few seconds or minutes, to capitalize on the sudden change in price.
Success in stock market prediction, or even, is one guarantee per trader. Success or failure depends on this. One needs to have as much knowledge as possible about all the possibilities available.
When one is comfortable with the test system and the previous one, this system can be used as a basis for investing or trading in the stock market.
Jeremy Quinn is author of the article. He is a professional finance blogger and guest writer at stock predictor service. He has been lucky enough to work for the famous economics technology magazine. Jeremy is from Ohio.
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