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AUTHOR- STREAM4U

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COURSE- ALL ABOUT PRICE FORECASTING

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INTRODUCTION

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• what is price focasting

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Hearing the word FORECASTING the first thing that comes to mind is prediction not #bt9ja shall in this regard, price focasting is the process by which investors predict the different prices of good, commodities, products. and it's demand offers from different suppliers.

The price of petrol for example is a seasonal something that needs price prediction like the country where I'm from #Nigeria, due to the system we operate here price of petrol for e.g is very easy to predict reason been that we take our crude oil to another country from Nigeria here so after it has been refined then it will be brought back.

by doing so investors can easily predict how much a litre of petrol can be sold, you see it also due to inflation and all the rest it's very easy to forecast. One of the factor that kick rise in the price of fuel is inflation, and just as they claim the transportation fair from Nigeria to the designated country where the product will be refined.

Other enterprises/ businesses may also make use of the available information to determine the future of price of goods and services, in the case the duration/timing of buying a commodity can adjust.

The various price tag placed in a certain goods for e.g if an investor goes to the market around 9pm at night the price of a particular commodity won't remain the same reason been that there will be a very low turn-out as to per individual coming to purchase goods at that particular time of asking, So investors can easily predict/forecast price.also

Regression can also attribute to the formulation of price forecasting as well, I have done some research and in the end I realized that price prediction is sometimes determined by the nature of the trend of goods or commodity in the market .

let's take an example when Real Madrid signed #Ronaldo from Manchester United one could quickly predict the price it his jersey in the market simply because of theTREND moving forward we have two types of price forecasting namely.

• Discriptive analytics

• Predictive analytics

• Discriptive analytics

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In this systematic method it includes collection of data and analysis, the presentation, and the interpretation of overall assessment of the behavior of goods in the market, meaning that investors can easily sit in their various houses and predict the price of goods coming into the market at a particular time.

By so doing the assessment of the investors quest regarding the goods coming into the market will then have to be done throught data keeping and anallization, before you can predict/ forecast the price of goods you need to apply so many technicalities to suceed, and one of it is data keeping.

• Predictive Analytics

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As you can see the name predictive it has to do with lots of guess work, this type of analytics is basically #historical, the forecasting system basically lies on future events the context of the price of goods at the moment leads to the determining factor of the future index.

prediction, for e.g if a commodity cost 2k, using your initiative you will surely understand that in future this assets might appreciate thereby leading to uprise in the commodity as well key example of this kind of commodity is Land the assets tends to appreciate on yearly basics. It's a valuable assets.

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This type of forecasting requires lots of technique such as data analysis thereby using proper computing system.the general collection prepares the firm process of data gathering.

In my country here we have good data gathering, the application of the various model of price focasting will be made understandable to the system been used the prediction task too Will surely be vital.

• Why price focasting is needed

business promotion

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Before you think of setting up a new business, you should try as much as possible to be very good at forecasting. With the help of forecasting some minor business risks/mistakes will be averted, remember in business there are lots of competitions but if you are very good at forecasting you command will assets of Different kind, and it will help promote your business to the next step, forecasting requires lots of brain works.

Estimating financial Request

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When we talk about finance money is what we mean, the ability of you the investor to utilize your capital will give you a good edge over others and by so doing your business won't fall into liquidation.

You need good capital as no business will survive without that, you now have to do a total accessment on how you have spent your cash then balance the account to determine your profit and losses.

plan formation

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If you fail to plan what you are planning is to fail, planning includes forecasting too for e.g you are planning to buy two bags of beans you should be able to forecast too you will know the amount that one bag of beans will go for or within the range in order to avoid extravergant spendings.

Careless spending of money always brings growing business down, before you spend you should be able to draft out plan balance your account then only the profit should be spent. the capital will then be used to purchase goods back and the business will then be full again.

Total control of assets

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If you are in total control of your assets thereby doing the forecasting and the purchasing of goods you will make great profit, and there will be lesser vonurebility in risk.

meaning that since you the investor have already applied lots of technique forecasting/predicting there won't be plenty looses because great insight have been placed towards the price of good's and services as well, You will amas lots of profit at the tail end.

what methods are best that you feel for price forecasting??

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There are so many methods of price forecasting but following the question the method I feel is the best for me is

• Linear/straight-line method

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This method seems to be very eazy if you want to follow price forecasting/prediction, the method is mostly followed by new investors coming into the market. You can use this particular method to predict future price of assets and the revenue that it will bring forth.

Moving forward straight line forecasting can also be used to summarize revenue that will emenate in future, in the year 2015, the growth rate was 4.0% and there is a designated formula that can be used for calculation.

And it is (C7-B-7),now let's assume that the uprising of an assets remains constant in near future. The same rating in 2015 signifies that in 2021 the rating will be constant too. Very simple let's view this diagram for proper understanding.

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As you can see from the image the previous years figures have been summed by the rapid growth rate, the sales growth percentage of 2015 is 4.0%, in 2016 4.0%, and so on and the forecast from 2017-2021 remains constant at 4.0% the you can use this formula to calculate the revenue C7*(1+D5)

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict.

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Decentralization of cryptocurrency makes it very difficult for anything to be stable, prices comes down and goes up at any given time of course you won't be surprised as that's the essence of a Decentralized system, That's how it works.

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When I woke up I saw steem very down, Steem is currently on $0.623, and I predicted that in the last 24hrs that steem will rise and in the last 24hrs it's now at -28.43%- 30.76% increase so in market capitalization forecasting is vital.

I also have strong view that before the next 48hrs there will be an uprise in steem courtesy the fact that is at $14,315,026.43 the higher the volume/ total number of traded steem of any Decentralized system the greather the uprising, The market rank is currently at #171.

Courtesy what we saw in the previous month were where steem rised to $1.5, and with the last 24hrs we saw the drop in steem and later it then rose again -28.43% and my forecasting is that in the next two weeks steem will rise to -70.77% it's just a prediction but hopefully we will all smile as we keep steeming.

conclusion

Everyone has its own view about whatever that is been written here in this regard no one knows it all and nobody is perfect. Thank you very much for reading through I really appreciate

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Cc:@stream4u