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Now a days there is a common idea amongst people all around the world that huge amount of stock is traded all across the world through a common medium of stock market. In todays world where we are living in a high technology environment, stock markets have become an easily available and accessible tool for common man along with strategic investors. Stock markets all across the world have one common feature i.e. uncertainty which is undesirable for anybody who is investing in the market but at the same time is unavoidable for the short term and long term stocks. Stock market prediction which is also known as stock forecasting proves to be an important tool in predicting the stock prices and thus, helping an investor to make his decision for investment.

Future of stock prices

It is virtually impossible to provide to investors the future price of stocks due to their speculative nature. Future price of stocks can be forecasted by investors generally through perception and expected growth of the particular stock, but this is only an assumption and not a verified and scientific technique to predict future of the stock prices. To predict the future of stock prices is a common problem for everyone as nobody knows that which stock is likely to give returns on investment in future. No perfect science is designed to predict future of stock prices but its always that you as an investor can make some intelligent and educated guesses about what is going to happen and what steps can be taken in order to minimize your risk to the lowest level. When any common man starts investing in stock market he starts liking to hear the news regarding stock markets, prediction statements regarding stocks from professional experts and traders on net and news channels. These professional experts generally predict the market with more emotionalisms rather than factual, which can put investor in a trouble if he just throws his money according to that prediction. Instead of following those predictions, investor should do the technical analysis on his own from the past movements of the stock. Study of chart patterns related to stocks is very important while preparing to predict the future of stock prices.

Predicting future of the stock prices

Tracking of stock prices in detail is done by technical analysts in order to predict the future of the stock prices but this method is also based on assumptions and cant be called as scientific. Various methods are used in order to predict the future of stock prices. In technical analysis, time factor should be kept in mind while buying or selling of a particular stock. This concept is based on the fact that attributes of investors change with respect to different market forces. In fundamental analysis, selection of a particular stock is done by keeping in mind the history of the stock in which the investor is going to invest by computing the real value of that particular stock with the help of its dividends, sale, investment and growth etc. Method of time series was used in traditional times, which took into consideration historic data and future values of linear combination which helped in predicting the prices of stocks. Method related to machine learning which involves the use of samples set which help in producing an approximation of function that produced the data. While predicting technical analysts keep in mind that stock market is self sufficient to adjust itself in pressure which can be seen qualitatively and not quantitatively. They believe that the trend in which the market is moving today will be good for the future movement of stocks. Analysts while forecasting future of stocks do keep in mind that the history repeats itself which acts as a solid background in making right decisions for doing investment. Quarterly reports and different news reports regarding different stocks affects its prices. While predicting the future of the stock . earnings of the company need to be watched at continuous time interval. Upward and downward movement of a stock and the points at which they got stable while going up and down should be studied well while predicting the future of any particular stock and before doing any investment.