subject: Learn to Predict Stock Markets Today! [print this page] Learn to Predict Stock Markets Today! Learn to Predict Stock Markets Today!
Imagine being able to predict the stock market. Your investment would increase in value every day, yield enormous profit and becoming a millionaire would be a matter of time! Just a few investing decisions, all done while sitting in your comfy chair at home and you can join the riches with your superb forecasting abilities! Read on to discover the secret behind this.
If something sounds too good to be true it probably is. Unfortunately, there are substantial amount of investors who are really looking for this secret and spending enormous amounts of money on all kinds of products and services that promise them to become the next Warren Buffet. This article will explain why it is impossible to predict stock markets.
Now when I say it is impossible to predict stock markets I don't mean that it is impossible to make a wise investment which has a high probability of delivering profit. The former is unrealistic and unachievable while the latter could be attained by different methods such as educating yourself about investing/stock markets or finding a good mentor who is a highly skilled investor.
The reason why it is not possible to predict the stock market 100% accurately is because there are too many variables which have the potential to influence the value of a particular stock. Taking all these variables into account would be an impossible task for anyone. Below are a few common factors that influence stock markets:
(Factors that usually influence the whole market)
- Changes in the national economy such as GDP growth
- Unemployment predictions, interest rate and inflation
- Changes in tax rules
(Factors that usually influence a specific stock)
- Borrowing costs of a company that change as a result of changes to the credit rating
- Threat of new and possible better competitors in the market
- Existing business processes or products becoming outdated caused by technological improvements
There are many factors that influence stock markets. It is impossible to keep an eye on all of them and therefore impossible to make perfect predictions. On top of that, it is unfeasible to be aware of some of these factors since only a limited amount of people may be aware of them. Being able to predict stock markets faultlessly is not possible and therefore you should never buy goods/services that promise you the opposed. Every investment has a certain amount of risk.
To learn much more about Beginning Investing, visit http://www.startbeginninginvesting.com where you'll find this and much more, including stock market lessons, tips and recommendations
