Forecasting Financial Markets to Bring Fortune Essays

The behaviour of markets and investors, the decision making in the market place and the dynamics of demand and supply in any given market cannot be determined with a hundred percent accuracy. However master minds in the past have designed various techniques and theories that help investors make a particular buying decision, or to make choices logically. These theories and techniques help today’s investors to peep into the future and make almost immaculate predictions regarding the future behaviour of the market and the ongoing trends. A lay man night view the decision making of an investor as being solely based upon speculation but in reality every move that an investor makes today in the market place is backed up by sound calculation and

Trend Analysis is attempting to spot a pattern in information that is collected. Trend analysis is mostly used to predict future events, although another good use is to review and estimate the situation of past events.

It is important to use trend analysis and company comparisons when evaluating the performance of a company. Using this information helps one determine if the company is within acceptable ranges, or has gone off-track into left field. When specific areas of differences are noted, management can determine what steps need to be taken to return to the track and head down the correct path. Trends and comparisons are not just about finances, they are about ways to capture income and increase net profits.

An analysis happens when you evaluate something and then break it down and interpret it for your audience. When you analyze something, you are observing it and then deciding “this thing means this”. Many things can affect someone’s analysis, such as stereotypes, culture, and past experience. We often analyze things in our day to day life without even realizing.

This is the assessment of the historical and future performances of the two companies in order to fully project internal and external factors that will affect the forecasts. The purpose is to identify trends, year to year changes, in order to assess whether the two companies’ performance are stable or sporadic and highly volatile.

In financial analysis, analysts use the financial data to monitor and evaluate a firm’s financial position, to plan the future financing, and to reallocate the size of the company and its rate of growth. Financial analysis involves examination of the historical data to achieve the information about the current and future the financial health of the company. They may work in the forecasting and profit analysis. They, like the accountants, prepare the reports. They prepare budget report, work in cost and general account. They analyze the changes in production and service to determine the effects on costs. They work on the graphs. They use statistic to compare the standard costs to the actual costs. They also study the significances of alternative ways of investing money in a particular field. They usually work for the large financial institutions. Particularly, they work

| Generally good use of relevant discipline knowledge and theory to analyse a financial issue; Analysis demonstrates understanding of, and addresses, most key aspects of the issue; Analysis of most key elements supported by relevant financial data

analysis based on what you know and NOT on what I know. For example, a paragraph at

To improve our predictions, particularly for volatility part, one-step ahead rolling predictions were computed, and its prediction vs actual return plot is illustrated below:

Trend analysis predicts the potential movements of a stock that is based on past data. There are different types of charts that you can create. For instances you can make a chart Traders get an idea of what might happen in the future, they get this idea from what has happened before in the past. The three types of trends are long, short, and intermediate term. Trend analysis is good because it does not go against them but rather it

For the month of December, I was given an assignment consisting of $100,000 and four stocks to invest in. My four stocks were The Ralph Lauren Corp., Visa Inc., Master card Inc. and The Chevron Corp. As stated I was given a month to record my data and I ended up with a total capital gain of $5,518.36 for the one month period for my investments. I have to thank you Mr. Acker, this project was not difficult, but it did confuse me. Receiving this assignment scared me in a way, because I didn’t know what I was getting into. The finance world is scary and tricky, one minute the market is doing good and other days it would be low. While calculating my capital gains or losses I thought I would lose a larger

This analytical method is useful in eliminating those possible outcomes or hypothesis that our biases have accepted to be true.2 This method explain the logic behind various hypotheses and can expose faulty or false information or reality’s. It helps the analysts understand the key factors of an issue and activate their critical thinking skills in regards to the issue.2

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.

Horizontal analysis is also known as trend analysis. It is a financial statement analysis method that demonstrates changes in the amounts of equivalent financial statement items over a period of time. Moreover, it is a useful tool in order to assess the trend situations in an effective and a more comprehensive manner. It involves the statements for two or more periods to evaluate trend situations. This analysis may be conducted for income statement, balance sheet, schedules of current & fixed assets, and statement of retained earnings of an organization (Wainwright, 2012).

In their research study, Souder & Myles (2010) identify that risk is chiefly fundamental to investing. Böhringer & Löschel (2008) further add that there is no discussion of returns or performance that is deemed meaningful in the absence of at least some mention of the involved risk. However, the trouble for investors, who have just entered into the marketplace, involves the process of figuring where risk really lies, as well as what the difference between the various levels of risks. Relating to the manner, in which risk is fundamental to investments, a significant number of new