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tronter
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Do you think that the future price of an asset, such as a stock or future is predictable to a certain degree? Or do they behave randomly (i.e random walk)?
I spent a few years writing software to predict future price movements. It shows that stock price movements are predictable at least one day in advance, to a degree at which only a brokerage house could (greatly) profit. The transaction costs must be very small (like 0.05%) to profit. I didn't test futures.tronter said:Do you think that the future price of an asset, such as a stock or future is predictable to a certain degree? Or do they behave randomly (i.e random walk)?
The stock market is a public market where investors can buy and sell shares of publicly traded companies. It allows companies to raise capital by selling ownership stakes to investors. The stock market works by matching buyers and sellers through a system of exchanges, such as the New York Stock Exchange and NASDAQ.
It is not possible to accurately predict the stock market. Many factors, such as economic conditions, company performance, and world events, can affect stock prices. While there are tools and strategies that can be used to analyze market trends and make informed investment decisions, there is no guaranteed way to predict the stock market.
A stock index is a measurement of the performance of a specific group of stocks. It is often used as a benchmark to track the overall performance of the stock market. Examples of stock indexes include the S&P 500 and the Dow Jones Industrial Average. Changes in stock indexes can reflect the overall health of the stock market.
Choosing which stocks to invest in can be a complex decision. It is important to do thorough research on the company's financial health, management team, and industry trends. Additionally, diversifying your portfolio by investing in a variety of stocks can help mitigate risk. It is also recommended to consult with a financial advisor before making any investment decisions.
Investing in the stock market comes with a certain level of risk. Some common risks include market volatility, company bankruptcy, and economic downturns. It is important to carefully consider your risk tolerance and diversify your investments to mitigate potential losses. It is also important to regularly monitor your investments and make adjustments as needed.