Six sigma is very effective tools thats really helpful, Is there any possibility that six sigma can be used in trading in share Market. 

52 week high and low gives you macro variation limit.

But we need to understand variation at amicro level.

From the technical chart try to find prices over a period of time. Now find the Standard Deviation. If the value is large........... this means the stock is very dynamic, more risk but more return.

Here again, mind has to be very sharp to map the future positive news of the company from media and hitting the right spot price at the right time.

Stock trading involves mapping your experience with Companies and relating Information to market. You must have a judgement for the price to strike. Six Sigma can help you to see the patterns that have occured over a period of time and help you in analyzing the stock behaviour.

If you combine this with the things I have talked, I believe you can really analyze better, improve your portfolio and also track and control the future variations in a better way.

I hope it adds some value.

To my understanding , 6Sigma would be more useful in rectifying and identifying your approach of analysing the portfolio . To be elaborate , if an individual has 3-4 ways of analysing the securities or the market movements and from that wants to pick upon the method thats most precise or gets the results with minimum variation to the actual results .

Also please understand , that stock market is not just a simple factory process . The factors that effect stock marketare very dynamic and the weightage of the factors keeps changing dynamically . e.g At one point of time the Crude price decided whether the markets would cheer or decline , then irrespective of anything it was a global crisis and the markets moved unidirectionally southwards . What analysis would help you in such situations ?

And as Abhinav mentioned , for stock market one needs to move more with judgement and updations on the realtime basis.

Shall look forward to your views on my comment.

Good discussion here. Simulation analysis can be used for predicting probability of returns using different portfolios. By using such an approach, an investment company can generate portfolios for high risk, moderate risk and low risk investors. Here, the objective is to improve the probability of success and not guarantee success. This is understandable as several influencing factors are beyond the control of a single organisation (or individual)

More comments welcome.

Best Regards,

VK