Analysis of stock: Fundamental Analysis

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Fundamental Analysis

Analysis of stock: Fundamental analysis
Analysis of stock: Fundamental analysis

Acc. to me it is the best way to analyze a stock for investment. It is a way to find out that a stock is undervalued or overvalued. Analyst study the financial figures of company through the balance sheet of the company, government policies related to the company/sector, analysis of industry/sector and then analyze the future aspects of the company. It is mainly done for long-term investments (acc. to me 1yr+) as it focuses on the value of the company.

Fundamental Analysis vs. Technical Analysis

Fundamental Analysis vs. Technical Analysis

Fundamental Analysis vs. Technical Analysis

This method is very different from technical analysis. Fundamental analysis is much more reliable given that it deals mostly with the present stature of a company rather than a delusional chart which can be affected by multiple factors. Some of the Key differences are:-

Fundamental

Technical

Focuses on value of the stock

Focuses on price oft the stock

TF. 1yr+

TF. 1day – 1yr

Financials are followed.

Price trend is followed.

Financial ratios play the main role.

Indicators play the main role.

Fundamentals are also starting to get the attention that traders needed to give them long time back and slowly there is a shift of domain, but it's still a far way to reach if what we are targeting is Fundamental understanding in trading.

Here is the link for opening a Demat account:

  1. Zerodha: https://zerodha.com/open-account?c=UY4367
  2. Upstox: https://link.upstox.com/9fAC  
  3. Groww: https://app.groww.in/v3cO/xkv346wi

  

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