Over a fairly long period of time, the stock market is a great place to invest.
Investors can profit from a well-diversified portfolio of stocks and hold those stocks with ease.
However, it is different from buying and selling shares in a short period of time, known as daily trading, which is usually carried out in one trading day, resulting in a much faster and riskier rotation of share capital.
If you are a stock player with the method described above, then you should check several aspects to know how the stock market will move from day to day.
Calculating stock price movements is not easy, but it’s also not impossible to try.
Stocks and the Economy
The stock market consistently rises and falls according to the health of the general and national economy.
The relationship between the two is very close because a slowing economy will adversely affect the income of many industries.
The number of consumers will decrease and consumers will also face a decrease in purchasing power compared to a normal economy.
Also added is the difficulty of capital accumulation or higher loan interest as a result of increasing the difficulty of the business sector.
Some of the key indicators of the economy can help account for the daily changes in the stock market. One of them is the unemployment rate information. This information includes information on the number of people who are on and off duty, which also indicates whether the industry is looking for bonus activities to strengthen its human resource base. If it is estimated that the unemployment rate is small, market players generally want to estimate by buying shares so that the stock price will rise. Likewise, vice versa, if the number of unemployed increases, then the stock market will face emendation. Essential bank notices about interest rates, tax policies and factory regulations also affect the stock market.
Investor style
Economic information can indeed bring changes to the stock market, but it is investors who are very responsible for changing the stock market.
The price of shares on various indicators such as LQ45 is entirely related to how much investors are willing to pay for the shares in that indicator.
An analysis of the attitudes and interests of investors can tell the changes that will occur in the stock market.
For example, analyzing keywords about stock signals via Google. trends can inform which industry stocks are in high demand and which economic zones are being watched by investors.
This information can bring up the addresses of which stocks are likely to be in high demand, as well as prices that may rise tomorrow.
Making predictions
Read as much financial information as possible, from a trusted source of course.
You can learn about the development of stock investing styles, as well as the upcoming economic changes.
You can find information from good online tools that are free or paid.
Combine all the data you have with your description and your insights about the stock market or specific stocks that interest you.
Record the inspiration you have, as well as the estimates that have arisen, then compare them with the reality in the square.
Do this obediently and repeatedly to improve your skills in calculating the short-time changes that occur every day in the stock market. (*)
