For any stock market investor, speculation of the stock price is the most crucial thing. Their buying and selling decisions are primarily based on the prediction. These predictions or stock market forecasts are done by experts after considering so many factors that directly or indirectly influence the stock prices. As an investor you can get stock market forecasts from different sources. You can get the forecasts from the TV channels, business magazines and newspapers and from internet. Stock market analysts make these forecasts after technical and fundamental analysis of the market trends.
While making the stock market forecasts the overall market trend is considered along with other factors like the economic and political scenario of the market. Other stock exchanges and performance of the prime indexes are also considered while making forecast about the stock market. While predicting about individual stocks and a particular sector there are so many other things that need to be considered like the past performance, earnings, assets of the company and the overall trend in the sector. Technical analysis and fundamental analysis play a vital role in the stock market forecasts as it helps the experts to identify the trend of the market from the numerical data that is the basis of these forecasts.
Though the stock market forecasts are effective in most cases and especially for those new comers to the stock market trading, you need to be careful about the forecasts. That means you should never blindly follow these forecasts. You must have your own research and analysis for picking up the right stocks to invest in. These forecasts can only help you with the decision and should never be your only guide in the stock market. Remember each analyst and experts have their own method of analyzing a particular situation. So the opinion is bound to vary from one forecast to another, if not radically but to some extent. Therefore, you need to be well aware of the whole scenario before taking any decision.