Investing in stock markets can be quite the risk because nobody has a clear cut idea of how the stocks are going to perform, but rather a very close approximation of the performance. With the help of statistical data, analysts can predict what might happen to certain shares, on certain days such as on Stock Earning sdates.
With the help of statistics and data from the past, you can accurately get an idea of what the movement of the stocks might look like. But analyzing and understanding all of this is easier said than done.
The sheer amount of data you would have to sift in order to come up with concurrences and conclusions of the stocks might perform takes quite the time, hence the best idea is to take the help of stock analysis tools available on websites.
What tools are available and how can you use it to your advantage?
The internet is full of a myriad of websites which can offer advice on stocks and give you stock tips, which might very well turn out to be bogus. The best way to make the right decision in the markets is to assess the numbers and rely on them.
Here we shall look at certain tools which you can use to see if your strategy for investment might hold out and reap you the rewards, or if you will need to change plans and methodology.
• Earnings calendar: This tool is incredibly useful for situations when you are looking to take advantage of market volatility and invest or sell your options. The dates when companies announce their performance reports is called an earnings date, this is the date when the most volume of the company’s stock is being traded, thus you would see a big fluctuation in the share price. With the help of this calendar, you can keep a track on the dates of various companies and strategize your moves accordingly. They also present with you various metrics such as predicted movement for the next day and after seven days, the previous day price and much more. With the help of this, you can position yourself to make wise moves during the earnings dates.
• Backtesting: Certain elements of analytics and the tools themselves might leave you baffled. You might get confused as to how a certain number might help in predicting the movement of stocks and prices; this is where backtesting comes in. With the help of this, you can accurately test the prediction on previous earnings announcement and surprises. The accuracy might surprise you and thus restoring your trust in the numbers and statistics of certain data sets. You can rest assured that all of your predictions can be tested out in this tool, thus removing all doubts about the certainty of how certain stocks might perform.
These are just some of the tools which are designed to help out stock brokers and traders to make the right choices when it comes to investing. You should utilize these tools if you are looking to plan out a strategy for your investments.