GETTING STARTED IN STOCK MARKET

How can you predict a market?

Your primary concern should be state of supply and demand. Because at the most fundamental level, supply and demand in the market determines stock price. One way or another, the answers lie in some form of analysis of trading volume, price action and moving average.

Understanding supply and demand is easy. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. The result of supply causes bear market and the result of demand causes bull market.

To predict the supply and demand you have to figure out the likes and dislikes of people, you have to figure out what news is positive for a company and what news is negative and how any news about a company will be interpreted by the people. Of course, it's not just the feeling people have about a stock. So, what are all the factors that affect the stocks price? The answer is that nobody really knows for sure.

The stock market will become far more interesting if you have the idea of what is going on and what is causing it to go up or down. A whole new and exciting world can open up for you.