Stock Market Predictions

There are a few ways to predict future stock market trend and directions. Most stock brokers analysts use fundamental and economics to predict where the stock may go.

Question is, how do you know if their recommendations are any good? Remember the dot com , boom and bust? And now the credit crunch ?

The answer is simple, do your own research or learn from experts in that field. There are a few methods which seems to be quite reliable however brief or long term it may be.

1. Fundamental analysis -

This is to evaluate the company past performance, look at ratio like PE ratio , PEG ratio ,earning per share, etc and compare with the market sector to see if the company is undervalued......etc

2. Use of Technical Analysis

Some say fundamental analysis does not come into this equation. Most use charts and chart patterns like cup and handle, head and shoulder, trend lines etc to forecast where the stock is heading. However, if you combine the two together, it will give you a slight edge over other traders.

3. Use of simple proven stock trading strategies, these stock market predictions techniques with experts help or do it yourself by using, Elliot Wave, Delta Trading, Market matrix, Swing Stock Trading - Advanced Swing trading strategy.

These involves simple calculations (percentages), drawing lines on stock market charts, counting number of traded bars etc. Some dispute these findings, but I say don't ignore them. Just use basic common sense , combine them together and you will have an edge over other traders and be more successful in your trading.

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