To target the stock trends before other traders feel like winning a lottery. It requires the right timing and sufficient luck. Although it is not easy, here is the way to spot stock trends.
The Starting Point
Professional investors are aware that choosing the right stocks is never easy, especially before anyone else finds it. They also know that the best starting point to find it is by using economic and stock market indicators.
Luckily, most top-ranked indicators are free of charge. As what has been founded by analysts through researches, seeking help from financial professionals and indicators will bring essential help. Thus, you can utilize that help freely.
Those traders who continuously monitor and review the best benchmark indicators are most likely to find the best stocks ahead of everyone else.
Therefore, it is important for traders the key indicators of stocks. Here are the six indicators that they need to know.
Business Inventories
The first one is business inventories, which is a monthly index that tracks how successful companies are selling their goods and services.
Gross Domestic Product
The gross domestic product (GDP) is a key economic indicator of a country. Unlike the previous index, it offers a picture of country economic activities, such as consumption, investment, government purchases, and net exports.
Consumer Price Index
The consumer price index (CPI) is the best way to track inflation according to many economists since it ranks prices for a fixed-list of goods and services every 30 days.
Unemployment Index
The employment index provides data on a country’s employment, hourly earnings, and the jobless rate. This index usually rises or declines after variations in economic activity.
Consumer Confidence
A nation’s consumer confidence index is usually tracked by the Conference Board. The track is based on monthly queries in the country’s households.
Index of Leading Economic Indicators
The index of leading economic indicators tracks future economic activity. The three straight monthly changes in the same direction usually indicate a specific trend in the country’s economy.
For example, negative data over three consecutive months could mean a potential country recession. Thus, once you see the reoccurrence of negative data, you have to find a solution for your investment.
Also read: How to Make Good Investment through Stock Trading?
