Is there any good website about future stock index trading price prediction?
> Fundamental and Technical analysis?
> Short, Medium & Long term prediction?
> For market in US (Dow Jones & Nasdaq) and
Asia (Hangseng, Nikkei, Kospi)?
I would appreciate for your detail answer... thx.
Answers:
Hi John,
It is a common misconception that anyone can "predict" stock or stock index prices. You can only determine the "fair value" of a stock or a stock index and compare it to other trading instruments. Using this approach you could determine stocks that are rather "cheap" when compared to others. But as you can imagine, many times there's a reason WHY this particular stock is rather cheap.
Unfortunately these days it is almost impossible to factor in all the fundamental data that is available. Therefore your best bet is technical analysis.
Stock trading is not as difficult as many people think. Following three basic rules for stock trading success can greatly simplify trading and increase your chances of making money in the markets.
Many people tend to believe that stock trading is difficult, time-consuming and risky. Following three basic rules for stock trading success can greatly simplify trading and increase your chances of making money in the markets.
The first rule dictates to only buy a stock that is moving up and don't hold a stock while it is moving sideways or going down. The rationale behind this rule is that it is much easier to take advantage of the momentum of a stock in a uptrend than trying to pick bottoms or tops. Many traders tried to pick bottoms and failed. The most successful traders are waiting for a confirmed uptrend before buying a stock. You just have to make sure that you identify the trend early and don't wait too long, since in the past couple of years uptrends were short-lived.
The second rule states that a trader should always know when to exit. This rules applies to both possible outcomes of a trade: A trader should determine a so-called "stop loss", which is either expressed in a percentage of the price or a fixed dollar amount. If the stock moves down, the trader sells the stock at the predefined stop loss point and therefore limits his losses to the predefined dollar amount. Most traders like to apply a stop loss of 2% - 10% of the capital invested in a stock. The same applies for a so-called profit target: Successful traders know when to exit a trade with a profit, since there is no guarantee that the stock price will rise forever. A typical profit target is 5% - 15%.
The third rule is about picking the right stock and is tight into the first and second rule. A trader should always be looking for stocks that just started an uptrend and are likely to maintain the momentum. If the expected uptrend does not happen, the trader liquidates his position and moves to the next stock. Private traders can adjust their portfolios faster than money managers, since private portfolios are usually smaller. Therefore the private trader definitely has an advantage and has the potential to outperform the performance of traditional mutual funds, if he applies the right trading strategies.
Hope that helps.
Trading should be based on your own understanding of market conditions, price patterns and risk; any information should be designed to contribute to your understanding.
That said I use http://finance.yahoo.com/
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