Why stock expert's predictions fail?

Stock market is one of the areas which fascinate each and every soul which is craving for making money. At the same time they get confused and sometimes even get demotivated because of foggy ideas and opinion that surrounds this concept.

Most of the time investors blame experts for not guiding them properly. Usual comments are "Experts will be there when market performs well, but camouflage themselves when it fails". People should understand that experts can only guide us but can't spoon feed us.

However there are some legitimate basic reasons that can be attributed to failures of expert's opinions sometimes.The basic reason that can be attributed is the awareness of investors and the information reach or access to information is more and easy when compared with earlier days.

Few years back, only few people invested in shares and they had some knowledge about the companies and the announcements the company makes every day or monthly. The source of information could be newspapers, business magazines.etc. But now the awareness among the people has increased and they are provided with medias, web-sites, and mobile phones through which all information about company announcements reaches all investors at lightening speed.

So whatever information got by one person is more or less the same. The idea behind this is democratization of knowledge. As a result only information oriented analysis and buying of shares based on that has become and will become a concept of less meaning in the upcoming years.

As all know share market is suppose to be like a bargain in which you watch or expect people to buy in future and you buy today. Every individual has this sense of risk-security and so he wants to ensure atleast some people do the same mistake what he does if his idea goes wrong. So stock analysis only based on information will have less significance.

Also no one could accurately predict what could happen. All can just sense the trend or understand the fundamentals and technical aspects. Also it's a developing area every technical knowledge in that area is an outcome of experience. If something like today has already happened, say a particular trend we can predict tomorrow it may happen based on analyzing the situation.

So analysts can only assist us but not perfectly predict daily market changes but by understanding the fundamentals of company they can suggest us a company for investment which in long term will pay us valuable returns.