| There are a few ways to predict future stock | | | | this equation. Most use charts and chart patterns like |
| market trend and directions. Most stock brokers | | | | cup and handle, head and shoulder, trend lines etc to |
| analysts use fundamental and economics to predict | | | | forecast where the stock is heading. However, if you |
| where the stock may go. | | | | combine the two together, it will give you a slight |
| Question is, how do you know if their | | | | edge over other traders. |
| recommendations are any good? Remember the dot | | | | 3. Use of simple proven stock trading strategies, |
| com, boom and bust? And now the credit crunch? | | | | these stock market predictions techniques with |
| The answer is simple, do your own research or learn | | | | experts help or do it yourself by using, Elliot Wave, |
| from experts in that field. There are a few methods | | | | Delta Trading, Market matrix, Swing Stock Trading - |
| which seems to be quite reliable however brief or | | | | Advanced Swing trading strategy. |
| long term it may be. | | | | These involves simple calculations (percentages), |
| 1. Fundamental analysis - | | | | drawing lines on stock market charts, counting |
| This is to evaluate the company past performance, | | | | number of traded bars etc. Some dispute these |
| look at ratio like PE ratio , PEG ratio ,earning per | | | | findings, but I say don't ignore them. Just use basic |
| share, etc and compare with the market sector to | | | | common sense, combine them together and you will |
| see if the company is undervalued...etc | | | | have an edge over other traders and be more |
| 2. Use of Technical Analysis | | | | successful in your trading. |
| Some say fundamental analysis does not come into | | | | |