Stock market is very volatile.
One must possess the skill to trade at the right time and maximize on profits.
Stock predictions are based on the following: Market related news: Following the latest news on the company will enable one to predict its future in the market.
Chart pattern of a company: It predicts the futuristic performance of the scrip.
This can be studied to buy or sell the scrip.
Volume growth: Initially on launch of a new company, large volumes of scrip are floated.
Increase in the volume of trade is a sign of positive growth of the scrip.
If the volume falls, it implies a fall in its value in the future.
Avoid purchase of such scrip.
Resistance points: Every company faces bottle necks in its growth.
One must comprehend technical graphs to know their timing and whether the company has the strength to get past them.
Alternately, one should be able to judge when an underperforming scrip will get support and sell it before the price falls badly.
Break-out: Trading begins after the scrip is initially floated in very large volume and it reaches certain level in its worth.
Be aware of mid-cap stocks that fake a break out and float scrip which would not have reached its level.
Company earning: Apart from knowing the scrip fundamentally and technically, one must be able to predict the performance of the company.
Growth of scrip is implied by large volumes of trading due to good financial growth of the company.
P/E of company: One can consider trading scrip if its price to earning ratio is low.