Investment decision making process requires forecasting skills, market knowledge, financial knowledge and much more to gain high returns. Investors pick commodities, precious metals and stocks based on their knowledge and the market information. Such market information and knowledge may be limited, incomplete or unreliable which may lead investors to losses. Market timing and reliable information is the key to success when you invest in stocks and commodities. Many investors suffer from bounded rationality and behavioral biases while investing. Illogical reasoning, disposition effect, herd mentality, excessive trading, overconfidence, mental accounting etc, are some of the popular biases of the investors’ perception towards stocks.
To overcome irrationality and cognitive biases, click on http://investinghaven.com for real time information and reliable support to make your investment decision making process effective. Many investors trade in commodities and indulge in intraday trading. How to invest in the commodities market is the real challenge for beginners. Whether it is the commodities bull market or the commodities bear market, the judgment requires comprehensive market knowledge and the application of effective forecasting methods. Before investing, a proper research is needed to have adequate knowledge about the commodities market. Keeping a track of the past prices of commodities such as aluminum, copper, crude oil, natural gas, copper, castor seed, Rmseed, and many more, identifying the rise and fall in prices, factors that influence the prices, fundamental analysis etc, are the ways to know more about commodities investing.
Indicators that help investors to take decisions-
- Fundamental analysis- The fundamental analysis helps to know whether the industry or company is earning profit or not. It studies the macro environment, market indicators, and economic conditions of the country.
- Forecasting techniques- Forecasting techniques apply quantitative methods to predict the future patterns and prices, it indicates where the market is going– whether the market is commodities bull market or commodities bear market.
- Reliable information- With the help of charts, investors get information about the different commodities, their price patterns for a particular period and probability of price rise or fall.
- Moving Averages- forecasting methods include exponential smoothening, averages, moving averages, regression method etc. Moving averages helps to identify a particular pattern and predict trends for a particular asset class.
- Behavioral analysis- The market forces are influenced by the behavioral biases of investors where they become irrational and take wrong investment decisions. Investors should be educated about the ways to understand the market and overcome with the behavioral biases.
Entering into the stock market as a beginner keeps you in a dilemma of not understanding the market trends. With the help of reliable financial websites, you can identify the trends of stock prices and where the market is heading. The bearish and bullish trends are effectively explained by the financial website http://investinghaven.com that helps you to avoid wrong decisions. Investors should not take decision on the basis of intuitions or gut feelings or emotions but study the practicality of the market situations. Illogical reasoning is big hindrance for investors that create a rosy picture that would lead to losses.