SHARETIPSINFO >> Articles Directory >>Make stock market predictable
Over these few years, we have seen finance blooming into a beautiful flower and attracting all the investors towards it with a view to reward them in the form of profits. Finance, more precisely the investment world has gained ground in a few years and has thus successfully become one of the integral part of our life. Their success can be very correctly assessed by the fact that in the present day, you will find very few people who do not know what a stock exchange is, or what are BSE and NSE, its functions, features, how it works, etc. Although there are an ignorant few who do not care about what is going on around them and are instead more interested in poking their nose into someone else’s business. You need to have a good knowledge about the stock market so as to make stock market predictable.
About the stock market
Nevertheless, it is of no use discussing about these ignorant few and as such, we will let them be however, they want to and thus overlook them. Up until a few years back you would hardly find people who even knew what a stock exchange or a stock market was leave alone the rest. In fact, there were people who did not even know what stocks or shares were. Alternatively, look at the present generation today, every one are quite aware of the terms stocks and shares, share market, stock exchange, etc. Every one has heard about them and at the same time every one has an idea, even though vague, about the shares, and stocks, stock market, stock exchanges, etc. Although at that time too, people used to invest money in the stock exchanges but the percentage of people investing such money was very less. In fact, it would not even constitute half the people investing in the stock market today. Having knowledge about the stock market, no doubt is important but do you even realize why.
Experience and knowledge are the two pillars of the stock market
We all have seen the pace in which the stock market is growing and at the same time developing. With this growth and development of the stock market, the importance of the stock market is too increasing. As such, today, the person too wants to acquire all the information and facts about the online stock market. In other words, since the importance of finance is on the rise today, it has created an urge in the people’s mind to gather all the knowledge they can about finance, investments, types of investments, stock market, etc. The main aim in learning all this facts about the finance, stock market, etc lies in the fact that everyone wants to earn profit. This is because the fact, that the experience and knowledge are the two pillars of the stock market and are essential requirements to earn profit in the stock market have come into light today.
Stock market is very unpredictable
Stock market, as we all know is very unpredictable. However, have ever wondered the reason as to why it is unpredictable. Probably no, but still you will have an answer today. Stock markets are unpredictable because the stocks and shares in the stock market are extremely volatile instruments. They fluctuate severely and in a way which has no definite sequence. In addition, the stock market is subject to business cycles. The business cycles are the situations of the ups and downs in the economy. The economy is never static, it keeps fluctuating, as already mentioned, and as such, there arises different stages in the economy. These stages are the periods of boom and depression. The economy can be very suitably compared to a wave. Just like a wave, always rises up and then descends down at regular intervals, the economy too rises (that is the period of boom) and then descends down (that is the period of depression) at regular intervals. In other words, neither the period of boom nor the period of depression lasts forever. Generally, the period of depression brings in losses and the period of boom brings in profit. Thus, to make stock market predictable you will have strive very hard.
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