The stock market is something that is always on the mind of a professional. Its ups and downs can make or lose millions of dollars for those who invest. The question on everybody’s mind is “How can I predict what happens next?” Those who can predict the stock market can take full advantage of that skill use it for their benefit. Those are the people who are making millions off their stock market investment. To help you learn the skills needed to predict the changes, here are the first 4 steps to get you started.
- Make a Spreadsheet to Get Thing Organized
When you think of a professional, you think of spreadsheets. So to get things started, you’ll need to make a spreadsheet. It will help you keep the information organized and help you to predict future trends. If you’ve been using Docstoc and you need an alternative, here are some Docstoc alternatives to get you started. Stocks can be messy and if you want to be accurate at predicting what will happen next, you will need to be organized and have your trends mapped out on some sort of paper. If writing it by hand works better for you, then go for it!
Another perk of having it written out is that writing helps you remember and process information. By writing or typing the information you learn about the stock market your brain will be able to work through a situation faster.
- Take a Look at the Low Priced Stocks
Now, record stocks that are lower priced. The tendency is to buy into a stock after it’s been on the rise for a long period of time. However, this isn’t always a good move. Think about what happened with Bitcoin (although it isn’t a traditional stock). Bitcoin’s prices soared to $20,000 per coin and people started buying in for their first stock at its high price. The cryptocurrency dropped suddenly and without warning. Those who invested after the initial rise lost significant amounts of money. Moral of the story, don’t invest when a stock is too high. To predict the rise or fall, play safe and avoid the high stocks. Instead, look at the new stocks. They have much more buying potential.
- Let the Top 500 CEOs Make the Decision for You
If you had $1,000 to spend on stocks, would you just go for it or would you let the top 500 CEOs make that decision for you? Of course, you would let the top dogs invest your money. The best way to “predict stocks” is to invest in the market as a whole. In general, stocks will trend upward. Invest money in the S&P 500 which is the top 500 companies worldwide. The investment makes a guess that the market will do what it has always which is that it will eventually go up.
- Watch General Trends (Especially on Reddit)
Trends will give a lot away when it comes to the stock market and Reddit has a surprising amount of accurate guesses. This happens because one person will post a guess and the next comment will critique it then the next will critique. The process goes on and on until the final product is a rough sketch on what the stock market could be doing next. If you hear one rumor, don’t believe it right away. If a lot of people are saying it, then follow up with it. The reason behind that is that if a lot of people are saying that a certain stock is about to crash, all those people are pulling their money out. When they pull out their money, it inevitably will cause the crash. Sadly, it can be a self-fulfilling prophecy but it’s best to listen to it instead of getting caught off guard.
All anyone wants is for their money to increase instead of decrease. If you’re not familiar with the stock market then you could be preparing to lose substantial amounts of money. But if you’re willing to invest your time into the stocks as well as your wallet, then you could be making out with more than what you started with.If you enjoy the content at iBankCoin, please follow us on Twitter