Stock Predicting Software

The internet has made it very easy to distribute stock predicting software. And, the information available about these software has grown as well. It is very easy to do research about a certain piece of software, and discover how well it works over time, and the overall results.

Stock predicting software has an ultimate goal of making money for the user. How does it work? When the software predicts that the stock will go up it buys the stock. When it predicts that the stock will go down, it sells the stock. One might think that a crystal ball is required to tell the future of the stock market, but it is in fact quite easy.

How is this possible? Because all of the short term movement in a stock price is determined by human emotions. It is very easy to tell when a stock is starting to go up or down, by simply observing the patterns of movement in the past. This is known as following the trend, or trend trading.

Often, traders apply a technical analysis to make these signals clear. For example, a moving average is the most basic and easily understood technical analysis tool. It is simply an average of a number of previous days' prices. This creates a line behind the chart of a stock price, and makes a pretty picture of what is happening with the stock. A human trader might say, "When the price is above the moving average, it is going up, so I am going to buy now."

Technical analysis combined with computing power works even better. A computer can analyze thousands of technical analysis indicators in less than a second. It can use that analysis and look for patterns in the movement of the stock price, just as the human trader did above. While the human depends on a high level of intelligence, the computer uses its superior speed and unfailing computational accuracy. This is one reason that we feel that computers are more successful than human traders.

Online Investing AI has created a trading system that makes money by identifying patterns in the market. We offer our clients good returns at reduced risk. To find out more, visit www.OnlineInvestingAI.com.