Predicting Future Stock Prices

Extracted from http://www.buzzle.com/articles/how-to-predict-stock-market.html

Break Out Patterns
Intraday trading strategies can involve studying the various types of stock break out patterns. The breakouts can be either in the upward direction or the downward direction. The breakouts actually denote the movement of a stock out of a fixed range which has been prevalent for several trading sessions. So, a breakout can help us to determine whether to go long or short in any given situation.

Volume Changes
Volumes on a stock refer to the number of shares being traded on it. We can easily calculate the average of shares being traded with the help of the monthly and weekly volume data. If the volumes being traded on a stock increase more than the weekly or monthly averages, then it may denote rising investor interest and thereby, a chance of the stock going up. Observing volume changes is important for those looking at day trading for a living.

Look for Improvements in Company Performance
Keeping a tab on corporate performances is one of the ways of how to predict stock market. All days are not the same for business or corporate houses. If a firm delivers poor financial results for a few quarters, then this does not mean that it lacks the potential to become a market leader in the future. There may be some genuine reasons for which the firm could not deliver as per the expectations. If there are signs of recovery or rise in business, then betting on such stocks as potential future multibaggers would not be a bad idea. An extensive stock research will help you identify such stocks.

Analyze the Valuations
In the discussion on how to predict stock market, analyzing the valuations of counters has significant importance. The answer to the question how to predict future stock prices is by looking at how comfortable the valuations of a stock are. For judging the valuations, we take into account the price to book, cash flow, operating incomes, cash in hand, earnings per share and price to earnings ratio of the stock. The investments are made only if these financial data are found to be favorable and conducive. If the valuations are stretched or expensive, then a sharp fall in the stock price can be expected.

International Financial News
Business news has a considerable impact on stock prices and this has been proved on many occasions. As a smart stock investing professional, you should be able to decide whether ht effect of a particular news on a company would be positive or negative one. If you are successful in predicting stock market, then chances of getting a good appreciation in terms of value is possible.

Stock trading is a risky field and should be practiced by expert traders only. The above content on how to predict stock market prices will guide you in the right direction. Apart from the stock market, you can also consider other investment options such as real estate, gold and deposits, to safeguard your capital. So, hoping that you will utilize the above information fruitfully, I would like to sign off here. Good luck for the investments.