Picking red on the roulette wheel gives you an almost 50 per cent chance of winning your bet. There is almost no skill involved and whether you win or lose depends on nothing more than luck. Contrast that with picking a stock. Like the little marble spinning around the roulette wheel, you have two possible outcomes. A stock can go up or a stock can go down. Unlike the random outcome on the roulette wheel, you have a vast array of information that you can access to give you a better than 50-50 chance of being right with your stock picks.
Go ahead and do your research and then compare your findings to the predictions of the informed investors that make up the community at PredictWallStreet. You may be surprised when you see just how accurate group consensus opinion can be. Join the community,share your stock predictions, and use the community’s predictions to affirm or alter your stock forecast before you make a final investment decision.
Most investment advisors would tell their clients not to try to time the market. Unless you are a frequent trader, willing to make big bets on short-term moves, that advice is sound. That does not mean that you can not benefit by paying attention to the community’s prediction for a stock you are interested in for the long-term.
As an example, suppose you are considering the purchase of IBM because you think that they will be able to successfully restructure their business plan and return to the dominant company they were a decade ago. Your research might suggest that it will take another year to turn the ship around. Should you buy now, or wait for the share price to go lower? Predictions can be wrong, but if 75 percent of the PredictWallStreet community is voting that shares of IBM will be lower in three months, you may want to delay purchasing the stock until market sentiment turns positive.
In the above example, there is an element of market timing. You are not trying to buy and sell IBM to make a few dollars on its short-term price swings, but rather, make a decision on the best time to add the stock to your long-term investment portfolio. If you believe in capitalizing on stock trends more than playing the short-term momentum of the market, you have time to wait and watch.
If you want to increase your odds of picking the right stock at the right price, pay attention to the crowd. Make the community even stronger by sharing your stock predictions. By joining, you can help others and help yourself to be a more informed and better investor.