The forecasts of the best professional players in share investment related matters can not be taken for granted. Nevertheless, efforts continue, research goes on unabated to understand the trends that happen in the market. The best of the brokers are at the prediction game and their intention is to assist the investor by providing clues to earn profit. No one is able to create a 100% accurate forecast system.



The stock market whether caught in bullish or bearish trends, is always volatile. In such conditions accurate forecasts are not possible. Instances are in abundance in the exchanges where the earnings of several months have been wiped out in a minute in a single trade, due to a wrong move. The most unexpected developments occur in the market and the brokers and investors are taken by surprise.

Experts have developed a scientific approach to predict the market's movements.

They do their job well; but the market outsmarts them even better. Some of the issues involved in the forecasts are:

Economic Analysis: Several factors influence the price of a share and they exert their influence simultaneously. Current trends in the economy primarily affect the share prices.

Natural calamities, wars, trade embargoes due to political developments, affect the prices and the forecast made earlier goes haywire.

Formulation of Algorithms: The computerization and the internet have simplified human endeavors in calculation of share prices, analysis and research. Stock prediction is done on the basis of mathematical and theoretical data. Algorithms integrated into stock prediction software give valuable clues to the brokers and investors.

Now, let us come to forecasts in the real sense of the term! W.D Gann, who made more than 50 million dollars from the stock market, proves that movement in the prices of shares is related to planetary configurations. He used astro charts in trading to prove his point. His theory merits serious consideration and can not be dismissed as a matter of blind faith, because he has shown the results. The theory is based on Cycles that history repeats itself.

He avers confidently that stock market dynamics can be calculated through principles of mathematics. He strongly believes that mathematical and astrological rules are the basis of movement of the prices in shares. If recession comes, boom will follow, according to him. Corroborating this view is the outcome of the technical analysis, according to which all shares show regular and recurrent patterns of price behavior. Cyclical swings in the market have been identified as per astrological calculations, as for primary, secondary and tertiary trends. Mathematical methods can forecast the support and resistance levels of the share indexes.

The fourfold movement of an Economic Cycle is - Revival, Expansion, Recession and Contraction.

Gann averred "If we wish to avert failure in speculation, we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things"

No shortcut exists for correct market forecasts. One's luck may work on a few occasions, but such trades can never be the base for regular investments. The gains of ten trades will be wiped out in one trade! Research and analysis are the dependable tools with a good success rate. The percentage of investors who suffer losses due to reckless trades, lack of knowledge and falling in the trap of temptation is very high.

Human brain is an astounding divine creation, and an individual on the profit-hunt in the share market uses its power to the best possible extent and yet an investor suffers losses. Sometimes he commits major blunders resulting in huge losses. The hidden relationships between many forces like political, economic etc. that continuously attack the share prices for better or worse, make the correct forecast extremely difficult. Correct forecast turns out to be correction in forecasts! But it is also the nature of a human being to try again and again!