Monday, January 28, 2008

Can a Part Time Investor Predict the Market ?

Predicting the stock market is very difficult since it depends on several known and unknown factors. The sheer success of stock market commentators, authors, websites and newsletters dedicated to predicting the stock market is testament to public demand for this kind of information. Until someone develops a crystal ball that works, predicting the stock market is going to remain extremely difficult or is it?

Of course, predicting the stock market is such a hard and potentially rewarding problem that its appeal will never cease. There is no one who can precisely predict stock trends consistently, all of the time. The philosophy that you can “beat the market with market timing” often leads investors to apply risky, short-term strategies such as day trading — where investors attempt to predict the market’s day-to-day fluctuations. But, is there a way to predict which way a stock will go, constantly?

That' s what I working to accomplish. A way to predict which way a stock is going to go and when. Then, profit from that move before it happens. I plan on doing this by taking a fundamentally sound stock(Leap) and applying technical analysis to the stock to determine it's future short term direction.

Technical analysis is the practice of trying to predict stock prices by examining trading patterns and comparing the shape of current charts to those from the past. By applying the tools that I use to those patterns( I will share them with you in my next post) , I hope to predict a stock's direction enough times to consistently profit from it. Can I do it? We will see.

So, as I progress I hope you will join me and give me your comments along the way. Can a investor predict the market? We will soon find out.

No comments: