How to Calculate Stock Averages

Add the total value of stock purchased on each stock ticket. This should be on your statement or ticket. If you don't have this, take the number of shares and multiply this to the price paid per share. For example, if you purchased 100 shares of XYZ stock at $15 per share, this would be $1500.
Add the total value of each purchase together. Assume you bought XYZ three times, each time purchasing 100 shares. You paid the following prices: $15, $10, $12. You would then have spent: $1500 + $1000 + $1200 = $3700.
Add the total number of shares you have purchased. For example if you bought 100 shares of XYZ stock three times, then you would have 300 shares total.
Divide the total dollar value spent by the total shares purchased: $3700/300 = $12.33/ per share.
You might need to consider the cost per transaction paid. If you are paying a commission for buying the stock, then add the commission price into the total amount spent before dividing it by the total number of shares. If you want to know your break-even price, add the estimated sales commission to the total dollar value as well. For example, if you spent $8 for each of the three trades, then: $3700 + $8 + $8 + $8 = $3724 for the total purchase price. If you will spend $8 on the sale, then your total would be $3732 / 300 shares = $12.44 for your break-even price.

How to Compare Stock Prices

Analyze a company's price-to-earnings ratio. The most traditional method of determining whether a stock is valued properly is to analyze this ratio of its price to the company's annual earnings per share. The P/E ratio is at the core of fundamental analysis.For example, if XYZ earned $8.50 per share last year and the stock is trading at $125 per share, the stock has a P/E ratio of approximately 15-to-1. In other words, the stock is trading at 15 times the annual earnings. Generally, the lower the P/E ratio, the better value the stock represents. Older blue chip companies typically trade at eight to 12 times earnings, while highflying technology companies can trade at 30 to 40 times earnings or more. A company can even be losing money and trade at a high price.
Compare a stock price to other companies in the same sector. It stands to reason that two or more publicly traded companies in the same business should be roughly similar in stock price, but this is rarely the case. By analyzing an entire business sector (airlines, banking, construction, etc.), you get a feel for which are the best performing stocks in that particular sector. Comparing the stock prices side by side often reveals which companies are best poised for growth in that sector. Google Finance offers excellent sector coverage.
Analyze the biggest winners and losers. Most stock-quoting systems will give you access to the biggest price and percentage movers of the day. Stocks that gained or lost the greatest dollar amount or percentage make for interesting analysis and potential investments. Stocks that lost much of their value one day might be due for a nice rebound the next. Likewise, by studying the stocks that gained a great deal in a given day, you may be able to identify other stocks poised to make a similar move.

How to Predict the Stock Index (3 Steps)

Choose the indices that you would like to follow. Monitor the price levels and volume levels of each index to watch for breakouts. Determine the resistance and support levels of the index for the period of time appropriate to your trading time frame. The resistance level is determined as a maximum price level that has been reached three times or more but not exceeded during a given period of time. The support level is calculated in a similar way, but at the minimum price level. If the price of a security exceeds the resistance or support levels, it's called a 'breakout' and indicates the possible beginning of a trend.
Trade breakout levels accordingly for the index you're trying to predict. If a resistance level is breached, you may wish to buy an index fund or index exchange-traded fund (ETF) that provides broad exposure to that index. If the support level is breached significantly, you may want to short-sell one of those funds.
Protect your investment in an index fund by using stop-loss orders. Trends can persist for long periods of time, but historically, most of them encounter re-tracements or reversals. For example, the Nikkei 225 of Japan experienced a high of more than 20,000 in the year 2000. In 2009, it remained at the 10,000 level, although it managed to reach a high of approximately 18,000 in 2007. Even strong trends are prone to eventual reversals.