52 Week High Investment strategies

Weaknesses:

Confounding variables in this study are interesting because they do not make this study “bad” because any information gained is useful.  Obviously investing in the stock market is extremely variable.  The economic state has a huge affect and should be accounted for.  National crisis has a negative affect on the market for example when there is a terrorist threat in New York City the market is going to suffer and all exchanges will drop.  Also the time of year has a big difference because corporations pay “dividends” to shareholders which increase stock prices.  The volume of the stock will affect the price as well because if no one is buying, the price will go down.  Traders also affect the Stock market based on their “trading style” as they can influence a price by buying it, and holding onto it, or buying it, making a quick buck, and selling.  The stock market can happen so fast, but some investors ride the wave all the way in and just find companies that historically perform well and stick with their stocks.  All these factors could have potentially strayed my data from the truth, although that is the stock market for you.  I do not believe I could combat these variables in any way.

Extrapolate:

This test could be extrapolated to anyone interested in the stock market or looking to invest in the stock market.  The knowledge someone can gain from this test can help them understand the stock market more, and be able to create a successful strategy for investing based on the test results. 

Further Suggestions:

I would increase the length of the study if I were doing over.  I could gather data for anywhere from a month, 3 months, 6 months, to a year, however this data may become insignificant over time as the stock market is highly volatile and changing “in the moment”.  But given the length of the project, a week is sufficient because it is in the present, and is analyzing the market in Present time instead of relying on historical data.