Is it possible to predict the stock market?
Is it possible to predict the stock market? This is one of the questions that hunts you for so long. As an investor all of you have to find the answer to this question. Let me tell you one thing. Stock market is not the place to try your luck. You are not here to gamble. Stock market is not the matter of luck but a serious business. Here is the good news for you. It is actually possible to predict the stock market accurately.
There are mainly three different trading schools of thought: fundamental analysis, technical analysis, and machine learning. These methods help the investors to invest intelligently and make profit.
Fundamental analysis is concerned with the company that underlies the stock itself. They evaluate a company’s past performance as well as the credibility of its accounts. Fundamental analysis involves the examination of economic factors that influence the price of a stock. Such factors include a balance sheet and an income statement. The balance sheet is a financial statement that provides information about a company’s assets, liabilities as well as the equity of their shareholders at a specific point in time. The income statement is another type of financial statement that gives a synopsis of a company’s performance. It provides information about their revenues, expenses, and net profit/loss over time. Fundamental analysis will help you to predict the stock market and make good profits.
The goal of technical analysis is to predict what other stock holders are thinking based on available information about the price and volumes of stock. It is not concerned with any of the company’s fundamentals. Technical analysts believe that future price of the stock is based solely on the trends of the past price.
Machine learning allows computers to use available data to predict future outcomes and trends. For stocks, it uses past performance data to forecast future prices of the stocks at different periods of time.
Though these tools help you to invest wisely in the stock market, losses may happen if you invest without adequate knowledge. So let’s stop gambling and be a pro.