Crypto Academy Season 2: Week 2 ||Homework post for @stream4u||

Hi Everyone and welcome to my homework post for week 2, season 2. A very detailed and well-explained lecture delivered by Respected Professor @stream4u.

NOTE: I did my homework on daily base things, and also explain every example, because due to the lack of knowledge many people don't know about price forecasting, By reading this post everyone can easily understand what actually price forecasting is.

Lets Start!!

QUESTION NO 1:

WHAT IS PRICE FORECASTING AND WHY IT'S NEEDED?
The basic meaning of Price forecasting is to predict something maybe it’s about any company, any asset, any bank, any trading company, or anything else. For example, when a professional predictor predicts something after his prediction mostly investors invest in that company because this prediction said by a professional, not by a general person. After investing, capital of that company increase and next year company make more profit as compared to last year.

Why Company makes more profit as compared to last year?

When suddenly many investors came and invest in that company after this, the company have more chances to make new products introduce them into the market, and sell them in the market by doing this a company can follow the trend or change the trend and can introduce new trends in the market. By doing this company’s reputation will increase and everyone wants to invest in that company thus the value of the company’s shares increases and the company’s shares are your asset it’s mean the value of your asset is increase.

QUESTION NO 2:

EXPLANATION WITH CHART:

HERE I WANT TO DISCUSS THIS CHART AND ALSO WITH EXAMPLES

EXAMPLE 1:

Firstly we will talk about 2015; in 2015 you can see the price of petroleum products is 61 Billion$ and in 2016 it increases up to 63%. During these years it increases 3%

WHY IT INCREASE?

If we talk about petroleum products day by day the need for petroleum products increases because in this modern era everything is doing by petrol and it’s a good investment you can say it’s a long-time profit. If you spend on it you can get big profit in a short time and this profit will never end.

EXAMPLE 2:

Gems and Jewellery
In 2015 gems and Jewellery Company make 44% profit from these products but suddenly in 2016, it decreased to 40%. It decreases by 5.18%. My prediction about jewellery is this trend never be the end a little bit ups and downs come in every business but this trend will never be the end.

WHY DID IT DECREASE?

Maybe due to some special reasons this trend decrease but in future, this trend will boost up. Because 99% of ladies love to wear jewellery that’s why this trend will go to the end.

Agricultural Products

Every human need to eat for a living. Most people love to try new dishes, this investment a little bit expensive like gems and jewellery but believe me this will also go to end. You can see in these two years it increases 0.81%.

WHY IT NOT INCREASE TOO MUCH??

Maybe due to some reasons like land problems, lack of technology etc it didn’t increase too much. But in the next few years when farmers used high-quality technology for their lands for harvesting crops and growing crops, this investment will give you more profit than other investments give.

NOTE: [I know this will profit but not very early that’s why I don’t take the risk to invest in it]

Textiles

This investment always increased in recent years and this will always increase in coming years that’s why this field increase 15.24% in just two years. If I’ll get a chance to invest I’ll in this field. It’s a professional field you can invest in it your 70-80% in it. Because this will give you profit in a very short time, it also saves your time and with this profit, you can invest in other fields and get more profit from there.

QUESTION NO 3:

What Methods are best you feel for Price Prediction/Forecasting?

If I talk about myself I’ll prefer fundamental analysis for prediction by using this method you can see, will the price of your asset increase next month or year. By using this prediction you can see the company’s progress, Ledger, sales sheet, expenses, and many other things. Company’s management, which products the company have and what is the market trend nowadays, these products will be sold or not, what was the profit and loss of this company last month, last 2 months and last year ago also, which new products company will introduce in the market. Company’s management is supportive to their employees and customers or not because this thing matters a lot that’s why I choose this method for prediction in this method you have chance to think well by seeing company’s reputation, will this company increase its capital, if company increase capital its mean company make a profit for you.

CONCLUSION:

In the attached picture, you can see some investments take a long time for more profit and some investments didn’t. When we are investing we need to clear our mind I’m investing in this thing, it will give me profit or not, it’s a long time profit or short time, we need to think all about these things after thinking we can invest as per example, suppose I have a chance to invest in these five fields, I’ll invest 50% of my money in the textile industry (after seeing the company reputation ledger, balance sheet and all other things) because it’s a long time profit in a very short time, After this, I’ll invest Engineered goods because day by days the demand of goods increase.

RESPECTED MENTION:
@stream4u

REGARDS:
@ahtishamghumman5