INVESTING - TYPES OF STOCK ANALYSIS

FUNDAMENTAL VS TECHNICAL ANALYSIS

TYPES OF STOCK ANALYSIS :

DO YOU KNOW!  What are basic types of STOCK analysis ?

So, Let's go, Actually there are 2 types of STOCK analysis.

1. FUNDAMENTAL ANALYSIS
2. TECHNICAL ANALYSIS

    Like two faces of coin they also are the two faces of STOCK analysis.  One is quite and clam other is aggressive.

1. FUNDAMENTAL ANALYSIS -  In FUNDAMENTAL Analysis we try to get the INTRINSIC value of any stock by evaluating and analyzing the factors which influence its price in the future.

         FUNDAMENTAL Analysis is largely depends on the data from  financial records, market shares, company assets etc.

         For doing FUNDAMENTAL Analysis of any company or sector, we need to do study of company's financial statements like BALANCE SHEETS, PROFIT  & LOSS STATEMENTS and CASH FLOW STATEMENTS. Also study of the earning reports released quarterly to get clear idea of revenues, expenses and profits a company making.

2. TECHNICAL  ANALYSIS -  In TECHNICAL Analysis total focus is on past market action study and try to predict future price movement. TECHNICAL Analysis largely looks for price and volume movement, demand and supply difference that will try to drive the market. Charts are the key tool in TECHNICAL Analysis. And in this type of analysis several  TECHNICAL indicator like RSI, STOCHASTIC, SUPERTREND, BOLLINGER BAND etc. That we will going to learn in next coming articles.

To Learn about RSI Relative Strength Index - Click here!
To Learn about Super Trend - Click here!

Disclaimer : This article is only for knowledge and information sharing and not for any type of recommendation.