Stock Market Performance History – How To Use It For Trading?
The stock market performance is followed by millions of traders around the world, but can past performance indicate future potential? For most experts the answer is yes, and performance history has a tendency to repeat when the stocks involved represent solid companies. Stock market timing is one strategy that closely examines past and current stock performance. Identifying market strengths and weaknesses can be done using past stock market performance charts and graphs, and this will help you understand the market better and make more successful trades. The stock market and the economy usually run in cycles, and looking at similar cycles from the past can help you predict current market moves more accurately.
Market timing charts for past and current years can help identify any patterns in stock market results that can be used to make better trades now. There are a number of different cycles which can have an impact on the stock market, and these cycles can affect the performance of both dividend paying stocks
and those which do not pay dividends. Understanding these cycles, and the specific effect that each has on stock market performance, can help traders make better investment choices. Short term cycles include the consolidation, upward advancement, culmination, and decline. Understanding exactly where a stock is at in this cycle can make a big difference in investment success or losses.
Longer term stock market performance cycles may last anywhere from four to sixty years. These are cyclical, secular, and Kondratiev cycles. Cyclical cycle phases will last about four years, secular phases will last around thirty years, and Kondratiev cycles run around sixty years each. Understanding the stock market means understanding the impact that these cycles can have on market activity and performance. If you know exactly where the market is at and what it will probably do you can be much more successful trading stocks, with better returns and fewer losses.