Finance

How To Accurately Identify And Monitor Stock Market Trends For Investment In Oil Stock

To become an expert in stock market investment, there are two prerequisites you need to analyse. Firstly, how to identify the correct timing of investment and understanding the market trends? Market trends show the performance of stocks over a period of time. Timing is dependent on how current economic conditions can affect the purchase or sale of stocks.

Stock Market Trends

As far as investment in oil stocks is concerned, you need to observe very carefully the rise or fall of the company’s stock over a period of time. This analysis will help you understand and derive the current stock performance.

  1. Bear Market

Bear market is a situation wherein there is downward trend in the market. It applies to anything that is traded in stock exchanges – bee it bonds, stocks, currencies or commodities.

       2. Bull market

Market is said to be bullish when there is an upward trend in the prices of stocks and other financial products.

Influences on Price Fluctuation

High demand with restricted supply results in price rise and vice versa Demand of oil will drive up the prices. Investors will certainly get benefitted when your investment in oil-related stocks would reap profit because of the rising demand in oil.

Additional Factors

Economic and non-economic factors affect the prices of oil shares (positively or negatively) such as natural disasters, wars, Presidential announcements. Though some of the factors are quite unpredictable these strongly influence the stock price in general.

Timing

You need to know when is the right time for buying, selling, or holding your stocks. As an investor, your ultimate aim is making money. You need to strategize on the right time, after paying close attention to market swings and the economy as a whole.

Conclusion

Assess the present and past performance of the oil stock you have shortlisted. Derive future trends after analysing the past price movements and only then hen take a call on whether to “buy,” “sell,” or “hold” the stocks.