Because of their very nature, it’s pretty much impossible to Predict and Anticipate the Ever-Changing Price Of Stocks. This is due to each individual investor’s perception about a company’s future, as well as their performance and efficiency, combined with their overall growth rate.
At the Best of times, this makes keeping an eye on them very difficult.
Keeping a Lookout for Market-related News…
If there’s news related to the company You’ve invested in, you need to know about it as soon as possible – the news could Positively or negatively Impact the worth of Your stock. If it’s Good News, this’ll allow you a heads-up to perhaps make a Nice, Tidy Profit sometime in the Very Near Future.
Research and Observation Skills are Critical for Success.
Study the Chart Patterns
For anyone who wishes to be a stock trader, studying stock chart patterns is an essential Skill. Two of the most commonly seen patterns are “bullish” and “bearish”.
- A “bull chart” pattern is where it’s smarter to trade a few times, and then book the profits.
- A “bear chart” pattern is where getting out before the stock falls is the smarter strategy.
Identifying and understanding these patterns in a company’s stock will allow you to see the strengths and weaknesses of the said stock – you can then make a rough prediction about its future worth.
Volume Growth Control…
Usually, and before they begin their run-up, it’s a common occurrence to see a company’s stock dramatically Grow in volume. Tracking the stock volumes day-to-day and estimating the rise or fall of the percentage in them, is a Good Way to Gauge Value.
If the stock increases in volume, it could mean that there’s a rising investor Interest in the stock. Conversely, if the stock volume gets heavier and eventually breaks down, then that’s an omen that it’s going to fall hard.
Spotting the Resistance Limits…
A stock’s upward journey is never an easy one, nor is it without expense – there are many, many hurdles. In order for a stock to grow in value, it has to push through several points of resistance in its life. Because of this, You’ll need to understand when it’ll occur, and how strong the resistance point will be, and these require both experience and the ability to study technical charts. If You Are Tracking Charts It Is Very Much Essential You Have Certified Technical Knowledge And Many Years of Experience Before Initiating Trading.
It’ll also allow you see where the stock can find good support, so that it doesn’t pass through those resistance periods and devalue itself as a result.
As soon as their stock surpasses certain upside ‘requirements’, traders are often advised to push it. The “break-out” needs to be heavy in volume, and must appear to be genuine.
One major danger is that many mid-cap and small-cap stocks are in-fact faux-breakouts, which are pitfalls for minor traders.
Having a strict limit helps prevent capital losses.
Keep an Eye on Company’s Earnings
In order to go up in value, a stock needs to have a Healthy, fundamental base – the company itself. It also needs to be technically sound. The health of the company should be a big factor in helping you predict how much the stock is going to be worth.
To predict the company’s profits, you need to be knowledgeable about income parameters in general, and any updates regarding any significant business decisions by the company. These decisions include mergers, putting stakes up for sale, and acquisitions.
A good result means that the investors’ confidences have grown, and that implies that the stock price and its volume have increased.
Know a Company’s Price to Earnings!
As a stock trader, you have to know the price to earnings (the “P/E”) of a company. If some stocks have a low “P/E” compared to others in the same sector, you could trade them.
It should be noted, however, that this alone isn’t the sole reason why stock prices rise.
Best Of Luck !!!