Financial Market Statistics
Investors largely depend upon the stock analysts before investing, as the analysts closely study the financial market statistics to develop a clear overview about different stocks, bonds, and securities. With the growth of financial trading, market statistics help significantly when initiating investments.
Investment without proper benchmarking can be of high risk. For better risk management, financial advisors thoroughly scrutinize market trends by using financial market statistics. For all kinds of stock market index benchmarking, it is necessary to have a clear perception of market trends, and it is prudent to note closing prices and daily changes. Financial market statistics are used for preparation of bar charts that help during market trend speculation.
Leading financial analysts around the globe closely monitor changing stock market statistics.
A close study of gainers, losers and performances by price level is possible with different financial market statistics. Financial market statistics can be daily, weekly, monthly, quarterly or even yearly.
Significant changes are often found using market statistics and fundamental and technical analysis are also carried out on the basis of the provided facts and figures. A clear distinction between strong and weak shares can be made on the basis of financial market statistics. During technical analysis, business trends and potential growth of different companies are checked.
Information about different stocks, bonds, and securities makes an investor aware and helps in perceiving trading volume and overvalued stocks.
Financial analysts around the globe are well aware of the following methods of analyzing stock market trends:
- Market share weighting
- Market value weighting
- Float adjusted weighting
- Full weighting
A financial market index may be used to find the price value (Price-weighted index).
The following techniques of stock market prediction depends upon financial market statistics:
- Scalping: Purchase of large number of stocks with the aim of a small change in the momentum.
- Day trading: Purchase and selling of stocks within a single trading day.
- Swing trading: Purchasing a share for a short tenure with the aim of an alluring return.
- Buy and hold: Buying a share with an eye toward long term investment planning.