A couple of common queries among those investing in stocks as well as those who don’t are ‘can the market be predictable’ and if so ‘how do I learn how to do it?’ In short yes, but in a sense also no.
There is no special formula which has cracked the stock market, usually no (legal) means of acquiring additional information on what stock may drastically go up making you rich or take a nose dive and save you money, or any kind of “crystal ball approach” to trading.
Given its rapid fluctuations which often make most predictions wrong stock market forecasting may seem impossible; but as previously implied some do suggest that there are indicators which may put you ahead of the competition.
The first thing you are going to want to constantly keep in the back of your mind so you don’t get flustered is no matter how good you are no person is capable of being the perfect investor. Even those who are quite adept at investing aren’t always making money.
Moving on, the internet investment Bible Investopedia suggests that stock momentum as well as mean reversion are good factors to observe when trading stocks. Additionally one strategy they suggest is value investing which may be a means to gain higher returns later when the market changes.
Furthermore the same source strongly supports analysis of market breadth suggesting that this skill, while difficult can give an edge when making market predictions.
However one thing one should do when predicting which stocks one should trade is to simply ignore other stock market forecasts. While the tools above may help you, most people no matter how educated and talented cannot produce long-term specific and accurate predictions of what will happen in the market most, or even all of the time. This can be seen by the hundreds of documented predictions made by experts over the course of two years yielding a prediction success rate of about forty-eight percent.
People who often play the market know this and commonly advise investors not to pay too much heed to forecasting. In the end go with what reason tells you and ready yourself for the rewards (or repercussions) to come.
Although this is true for the best part, hedging your bets should not to be sneezed at when being advised by a stalwart veteran in the arena. One such person I can vouch for is an MA Camp adviser, who regularly dishes out top notch stock picks proving to be a lucrative strategy over time.
One of the major things that sets him apart from other so called experts is he actually invests his own money on what he advises us on. In other words, he puts his money where his mouth is, to coin a phrase!
Robert Kiyosaki sits down with Kurt Carlton, CEO of Sherman Bridge Lending and Andrew Welker, CEO of New Western in 2012. He predicts the economic future of China and many of the struggling Euro countries. He relates Texas real estate investment to a game of monopoly. Talks also about how investing in real estate can hedge some of the socialistic problems we will be facing with social security and Medicare.
Kiyosaki states he mainly invests in distressed houses and apartment buildings in Dallas, Fort Worth and Houston investment real estate. He is also a big proponent of using leverage such as hard money to get your investment deal done. New Western is a Texas based company that provides investment properties for real estate investors www.NewWestern.com and Sherman Bridge Lending provides rehab lending for real estate investors www.ShermanBridge.com.