Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
If you could accurately predict the stock market, you could earn a LOT. But, the stock market is not something that you can predict precisely. There are a few factors that can help you figure out where the price might go. However, there’s always a level of uncertainty involved. It is because stock prices rely on many factors.
It involves the company’s financial situation and also the economic factors of the region. We have put together a few factors that influence the price of the stock. Note that these are not the only aspects that impact the stock market.
1. Company news
The most important aspect is the news about the company. Many people buy and sell stocks based on the latest news about the company. For example, if there is news about the potential closing down of the company, many people would sell their stock holdings. And investors will pull back. This will impact the stock prices and result in sudden drops. So, it is vital to have a stocks tracker app where you can monitor all your investments.
Similarly, some news can also make the prices go up. For instance, signing a new contract that might benefit the firm.
2. Economic factors
There are many economic factors involved in determining the value of a stock. It includes interest rates, inflation/deflation, economic shocks like terrorism/war, changes in government, etc.
Among these, interest rates play a vital role. When the interest rates go up, the stock prices are likely to follow a downtrend and vice versa. However, only significant changes in the interest rates will impact the final stock price.
3. Investor sentiment
There are two types of markets: the bull market and the bear market. The bull market is when a large part of investors show confidence in the stock market. This will often result in an economic boom and an increase in stock prices. The bear market is the exact opposite of that. It is when a lot of major investors pull out and the price reduces with no hopes of improvement. A situation like this may also be signs of a recessive economy.
4. GDP
The GDP of a country plays a significant role in the stock prices of the companies within. When GDP is on the rise, many show interest in investing. This helps the economic output of the nation. Resulting in better stock prices. This is like a bull market, where a high GDP increases the confidence of the investors and thus the price. Having a reliable stocks tracker app can help you understand the trends better and make profitable buying decisions.
5. Natural calamities
The most unpredictable factor is a natural calamity. It can happen anytime and can take a toll on the stock market. During these incidents, a company may not operate. Or they could have lost their properties or assets. Therefore, the stock prices dropping are inevitable.
Summary
You can track investments and be informed about it at the right time using apps like Delta. But, there’s no definite way of predicting the exact movement of the stock prices. Also, always remember that an understanding of the company helps. Happy trading!
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.