InvestorQ : Why is it so difficult to predict the market for investors?
Arti Chavan made post

Why is it so difficult to predict the market for investors?

Answer
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Dawn Cherian answered.
2 years ago


Do you know you cannot predict the market? The reason is quite simple because you do not control it. You can easily predict what you can control. For example, you can reasonably project your bonus for next year or your company’s profits because these are largely based on factors that are within your control. However, when you try to predict the markets you are trying to predict something which depends on a plethora of factors that are outside your control. There is also a big emotional game in stock markets. The price of any stock not only reflects the value of stock and its future earnings but also the market sentiments. Since the market is just an aggregation of millions of sentiments, it is hard to put your finger on the pulse of the market. One of the basic steps to succeeding in trading and investing is to admit that you cannot reasonably predict the market. What you can do is to put estimates of value and wait for the price to get closer to value. That is in your control!


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Purvesh answered.
2 years ago


Nothing is predictable in this world and even the stock market. Though there are certain factors which do affect the stock market sentiments. It includes RBI policy, Crude oil prices, USD etc. It is also seen that history repeats itself and the same in the case of Market as we heard the crash of same in the Year 1987, 2009 etc.
Sometimes technical charts also help in predicting the market sentiments. It is beyond the scope of anyone to predict the markets, it's just a knowledge by the experts and learning techniques which gives ideas about market prediction.