Stock Market Timing and The Unpredictability of The Market

December 29, 2011 by carolinecollins5   comments (0)

Optionbit

Lots of people romanticize the stock market as though it were a glamorous international casino where iron nerves and intuition make poor men into millionaires. In this version of the story book, striking it rich is about somehow determining the other people don't know, buying low, selling high, and then purchasing a yacht. Those who are new to the trading game helps you to save themselves considerable time and heartache when they immediately internalize one important fact: attempt to predict the near future and you're simply bound to lose.

Optionbit

Since the stock market goes up and down according to opinion, it operates separately from the rules of logic. Instead, the market moves due to human perception. Because billions are involved, emotion comes into play and logic is out the window. Investing your savings on the hunch is much like betting it at the craps table: the house usually wins. If you need proof, consider it this way: when the market could be predicted, everyone knows exactly when to sell so when to purchase, there would be no stock exchange.

We have now established that the stock market is unpredictable. Does that mean it is impossible for normal mortals to make money? The reply is no. It is possible to make gains on investments, but instead of making predictions about the unpredictable, the smart investor will base their methods on stock market timing. The important point here's that instead of trying to find the next breakout stock before it bursts onto the scene, better pay of success is going to be achieved by investors who use a stock market timing strategy based on market realities.

Optionbit

Gambling on the stock exchange will usually only result in second guessing and indigestion. An infinitely more reliable approach is to apply a method to proven stocks such as the 30 companies within the Dow Jones Industrial Average. By making calculations according to past performance and automatically buying and selling when certain criteria are met, the stressful guesswork is eliminated in the equation and risk factors drop significantly.

Nowadays, the character of trading is different significantly due to computers. The speed and adaptability with which data can be crunched implies that automating the process has never been easier. When using computers you'll be able to chart existing trends after which calculate what events will signal a change in that trend. An essential note here's that not all programs are the same and effectiveness will depend on what parameters confirmed program uses.

A good program will use effective calculations to analyze real time stock exchange information against a predetermined set of data. When certain indicators are discovered, the system already knows how to proceed. By using stock exchange timing like a guiding principle, annual returns tend to be more stable, sometimes up to 50% or more. Obviously, there are no guarantees, but by taking out the guesswork and carrying out a method, investors can your investment antacid tablets and rely on proven science for additional reliable returns.

Stock Market Timing and also the Unpredictability of The Market

December 29, 2011 by carolinecollins5   comments (0)

Optionbit

Lots of people romanticize the stock exchange as though it were a glamorous international casino where iron nerves and intuition make poor men into millionaires. In this version of the story book, striking it rich is about somehow determining the other individuals don't know, buying low, selling high, after which buying a yacht. Those who are new to the trading game helps you to save themselves a lot of time and heartache when they immediately internalize one important fact: attempt to predict the near future and you're simply bound to lose.

Optionbit

Since the stock market rises and down according to opinion, it operates separately from the rules of logic. Instead, the market moves due to human perception. Because billions are participating, emotion comes into play and logic is out your window. Investing your savings on the hunch is like betting it in the craps table: the house usually wins. If you need proof, consider it this way: when the market could be predicted, everyone knows exactly when to sell so when to purchase, there could be no stock exchange.

We have now established the stock market is unpredictable. Does that mean it is impossible for normal mortals to earn money? The reply is no. You'll be able to make gains on investments, but instead of making predictions about the unpredictable, the smart investor will base their methods on stock market timing. The important point here's that instead of trying to find the following breakout stock before it bursts onto the scene, better pay of success will be achieved by investors who use a stock exchange timing strategy based on market realities.

Optionbit

Gambling on the stock market will usually only result in second guessing and indigestion. An infinitely more reliable approach is to use a method to proven stocks such as the 30 companies within the Dow Jones Industrial Average. By looking into making calculations based on past performance and automatically buying and selling when certain criteria are met, the stressful guesswork is eliminated in the equation and risk factors drop significantly.

Nowadays, the character of trading is different significantly due to computers. The rate and adaptability with which data could be crunched implies that automating the process has never so much easier. When using computers you'll be able to chart existing trends after which calculate what events will signal a change in that trend. An essential note here's that not all programs are the same and effectiveness will depend on what parameters confirmed program uses.

A great program will use effective calculations to investigate real time stock exchange information against a predetermined set of data. When certain indicators are discovered, the system already knows how to proceed. By using stock exchange timing as a guiding principle, annual returns are much more stable, sometimes up to 50% or even more. Obviously, there are no guarantees, but by taking out the guesswork and following a method, investors can your investment antacid tablets and depend on proven science for additional reliable returns.