Basics of Finance/ Stock Market

  Technical Analysis Analysis of stock: Technical Analysis The second major type of Analysis of a stock (first is Analysis of stock: Fundamental Analysis ) is on the basis of technical indicators. It focusses on the price action of the stock. This is a main way by which intraday traders or short term traders, FnO traders analyze a stock. It is used to predict to price movements of the stock i.e. upside or downside. Key factors of Technical analysis are Analysis of stock: Technical Analysis ·       Charts ·       Price Action ·       Indicators (MACD, RSI, Alligator, etc.) ·       Market Statistics ·       Demand and Supply patterns ·       Moving averages ·       Exponentially moving averages. Technical vs. Fundamental Analysis Technical Fundamental Focuses on pri...

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 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 ...