Stock Selection and Market Forecasting |
Whatever their trading strategies, traders solve very similar problems in different ways. Setting details aside and trying to analyze them reveals that there are not so many basic problem types. We have distinguished four.
What problems are solved during trading? |
1. Selection of stocks suiting your trading strategy best
There are thousands of various ways to select stocks for trading. One of them is using stock filters (stock screeners) which are an important tool for asset attractiveness analysis. They are traditional, plain, and convenient tools to use. Are there any other analytical methods, which would facilitate analysis of huge numbers of stocks? Are there any drawbacks in existing tools? If there are, how can they be eliminated?
The figure below presents performance of our StockPuzzle tool, specially developed for asset parameter analysis. Analysis has been executed for NASDAQ stocks. Stocks were broken into three groups by amount of yield for the last week. You will find the most typical companies for each group in the line below. One glance at those companies' yield only is enough to understand what typical yields are currently present in the market.
Attention! The figure is updated on weekly basis and reflects the real data.
Claster analysis of NASDAQ stock prices return.
| |
Cluster number |
| 1 |
2 |
3 |
| Cluster center ticker |
INGP |
CTSH |
MCLD |
| Cluster center coordinate (yield) |
+0.33 % |
+7.14 % |
-6.43 % |
| Number of tickers per cluster |
1130 |
384 |
486 |
|
2. Future stock prices outlook
Everyone has his/her own ways of forecasting. This can be explained, first of all, with variety of trading strategies, and their numbers are really great, since trading purposes and timeframes are all different. Some people use fundamental analysis methods, others prefer technical analysis, while some use quantitative analysis and even the latest achievements in the field of applied mathematics and physics. Trying to sort out all nuances of methods of forecasting is hard enough even to people with special education.
We offer you the ready tool for future stock prices forecasting.
We have made all analytical and mathematical work ourselves.
How to predict stock prices? 
3. Stock market direction forecasting
When trading in the stock market, many traders use various stock index forecasts in their strategies. Their values help in evaluating the future behavior of both the market as a whole, and any stock taken separately.
4. Selection of entry and exit points using technical indicators
Many technical analysts use technical parameters and indicators of stock prices to generate buy or sell signals. In most cases, true signals are their relative positioning. However, it is possible to calculate value of any parameter only after the end of trading session. If you see a buy signal, you can do nothing - the session is closed. Knowledge of your indicator values at least a day ahead is so needed in such situation!
|
Main
