Investment, whether in stocks, bonds, or forex, is always a risky venture. Markets fluctuate a lot, and numerous factors beyond your control affect stock market trends. Nothing exemplifies the volatility of the market better than the recent crash brought on by the coronavirus pandemic.
Ever since the coronavirus started spreading rapidly across the world, the value of various stocks has been plummeting, and trading has been brought to a near-standstill. The COVID-19 crash is worse in many aspects than any other market crash ever witnessed, including the 1987 Black Monday crash, the 1929 crash, and even the 2008 crash.
In fact, in March 2020 alone, the market-wide circuit-breaker was triggered four times. The circuit-breaker refers to a safety mechanism put in place to contain a crash before the worst happens. The safety measure works by putting a stop to trading for fifteen minutes, in the hopes that panicked investors will stop selling all their stocks. Despite this measure, people still sold shares at an unprecedented rate.
Why Should You Be Warned of Such Significant Stock Market Changes?
As an investor in the stock market, information is your closest ally. It is only by remaining informed that you can successfully identify stock market trends, take advantage of any available opportunities, and cushion yourself against adverse trends in the stock market. Concerning the coronavirus pandemic crash, those who successfully predicted the pattern could tell that although the market was doing well earlier in the year, a collapse was coming. They were, therefore, able to sell stocks before everyone else started selling out of panic and fear. Their stock market timing was precise. That way, they shielded themselves from monumental losses with which most other people had to deal.
How to Predict Stock Market Moves?
Stock market forecasting is no easy task. It requires a lot of persistent and diligent observation of trading trends. Generally speaking, however, three things cause a collapse of the stock market.
• The first is an overvalued market. If investors value the market excessively, then there is a chance that it will come crashing down soon.
• The second one is financial engineering or market contraptions. The 2000 stock market crash, for instance, happened because investors were overly excited about all tech-related investments, which ultimately made their value to plummet.
• The third reason for a stock market collapse is an external catalyst such as a pandemic or a terrorist attack. This is the reason for the 2020 market crash.
If you have this information, predicting the stock market should be a tad easier.
How the UMPI Predicted the COVID-19 Market Crash
It is impossible to overemphasize just how critical information is to an investor. So important is it that trading information from an insider perspective is a criminal act. As a trader, a reliable tool that can help you with stock market prediction and stock market timing is invaluable. This is what the Universal Market Predictor Index does. It is a tried-and-tested stock market forecast tool that helps traders make informed decisions with regards to trading.
Developed and thoroughly tested over multiple years, this tool uses proprietary technology for predicting stock market changes and trends. Subscribers can then use this information to adjust their portfolios accordingly. The tool analyzes information from reliable sources for stock market prediction. From its successful prediction of the COVID-19 market crash, it has proven to be a tool on which traders can rely.
How UMPI Helps You Navigate the Stock Market
If you wish to be a successful trader, you must find a tool that helps you analyze information and determine patterns accurately. That is what UMPI is. Add this tool to your arsenal of trading resources, and you will not regret it. It will prove to be priceless to you.