When checking stock data, it is best to look for the frequency of the observations as well, i.e. whether the data are daily, weekly, or monthly.
This depends on the time frame that the person wants to concentrate on, i.e. for how long he will be intenting to trade the stock and whether he will be keeping the stock, i.e. for few days for profit taking from stock' s daily ups and downs, or whether he eants to invest for the longer term.
If trading with daily data, then the person may be thinking more towards speculation, i.e. taking advantage of the stock' s daily ups & downs, rather than genuinely waiting for the stock to appreciate, thus giving profit in the longer run.
So, if a person is going to be keeping the stock for only a few days, the it may be useful to be checking daily stock data. If the person though may be willing to buy and keep the position for longer term, i.e. months, or even for a year, or more, then daily data may not be appropriate for him. For this strategy, i.e. the owning of the stock for a longer time, then the person may be more an investor, rather than a trader. Therefore, looking at a different frequency of stock data may be appropriate, i.e. the weekly values of the stock, or even the monthly.
Checking stocks is different than checking market indicators like the S&P 500, or Nasdaq, etc. If someone is to buy indices and be willing to keep the positions for years, let' s say, then the stock data he will be watching may not be daily data as they may be too erratic anyway, even for short- term traders who may be hoping to profit from daily values and ups & downs. Data like weekly, or monthly stock values may have more relevance and be less erratic than daily data, thus, may present a better view and better approach to investing, which means the long term keeping of the position of the stock, i.e. in general buying long as it is termed, i.e. buying for the long term.
Therefore, this is the use of monthly data values, i.e. they may be more worthwhile values to the investor rather than the trader. The monthly data may help also filter out any random prices in the stock and help to give a better view, of the longer term that the stock may be trending. The trend viewed will be a longer term view, as well as the absence of daily erratic data.
This approach, i.e. the view of longer term values for stocks, i.e. monthly values, also helps to see, or predict any recessions that may happen in the future, i.e. the person with monthly values, may be able to seeing the actual bull, or bear trends, i.e. whether there is booming market, or whether the may be a recession coming. Knowing any knowledge about bull & bear markets can make a person better fit for trading such cycles, which can be very important.
Thus, as a conclusion, we can say that the trader, or investor, may also want to see the long term ups & downs of the stock i.e. its monthly data alongside the daily data. Although daily data may be good for the short- term trader, the longer term data may be showing a better view of whether we will be living through a market boom, or market recession. Then, for example, if a recession is forecasted, even the short-term trader may want to avoid doing an purchases, if the stock may be having a longer term downward trend. In making money during a recession can be more difficult than making money during a boom so, more care may be needed, and perhaps the person to avoid completely the stock market and look to invest in mutual funds for example, or something else, like currency, or gold, etc.
This depends on the time frame that the person wants to concentrate on, i.e. for how long he will be intenting to trade the stock and whether he will be keeping the stock, i.e. for few days for profit taking from stock' s daily ups and downs, or whether he eants to invest for the longer term.
If trading with daily data, then the person may be thinking more towards speculation, i.e. taking advantage of the stock' s daily ups & downs, rather than genuinely waiting for the stock to appreciate, thus giving profit in the longer run.
So, if a person is going to be keeping the stock for only a few days, the it may be useful to be checking daily stock data. If the person though may be willing to buy and keep the position for longer term, i.e. months, or even for a year, or more, then daily data may not be appropriate for him. For this strategy, i.e. the owning of the stock for a longer time, then the person may be more an investor, rather than a trader. Therefore, looking at a different frequency of stock data may be appropriate, i.e. the weekly values of the stock, or even the monthly.
Checking stocks is different than checking market indicators like the S&P 500, or Nasdaq, etc. If someone is to buy indices and be willing to keep the positions for years, let' s say, then the stock data he will be watching may not be daily data as they may be too erratic anyway, even for short- term traders who may be hoping to profit from daily values and ups & downs. Data like weekly, or monthly stock values may have more relevance and be less erratic than daily data, thus, may present a better view and better approach to investing, which means the long term keeping of the position of the stock, i.e. in general buying long as it is termed, i.e. buying for the long term.
Therefore, this is the use of monthly data values, i.e. they may be more worthwhile values to the investor rather than the trader. The monthly data may help also filter out any random prices in the stock and help to give a better view, of the longer term that the stock may be trending. The trend viewed will be a longer term view, as well as the absence of daily erratic data.
This approach, i.e. the view of longer term values for stocks, i.e. monthly values, also helps to see, or predict any recessions that may happen in the future, i.e. the person with monthly values, may be able to seeing the actual bull, or bear trends, i.e. whether there is booming market, or whether the may be a recession coming. Knowing any knowledge about bull & bear markets can make a person better fit for trading such cycles, which can be very important.
Thus, as a conclusion, we can say that the trader, or investor, may also want to see the long term ups & downs of the stock i.e. its monthly data alongside the daily data. Although daily data may be good for the short- term trader, the longer term data may be showing a better view of whether we will be living through a market boom, or market recession. Then, for example, if a recession is forecasted, even the short-term trader may want to avoid doing an purchases, if the stock may be having a longer term downward trend. In making money during a recession can be more difficult than making money during a boom so, more care may be needed, and perhaps the person to avoid completely the stock market and look to invest in mutual funds for example, or something else, like currency, or gold, etc.
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