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  • Category: Stock Market

    Fundamental & Technical Analysis


    Have a query about fundamental and technical analysis? Searching for information about its importance for day traders, the difference between them etc.? Check out this page and get all the answers you are looking for.

    Please share your knowledge regarding fundamental analysis & Technical Analysis.
    Which is better for investor ?
    What is Importance of Technical Analysis for Day traders? Which technique is fetching more earning in the stock Market? What is ratio, common investor following the said techniques?
  • #149123
    Fundamental analysis and technical analysis are at opposite ends of the spectrum. These two methods are used to understand and forecast the coming trends in stock prices of a particular company.Like any investment strategy or philosophy, both these analysis methods have their positives and negatives.
    Fundamental analysis is an evaluating method of securities by measuring the intrinsic value of a stock. Fundamental analysts study everything from the overall economy and industry conditions to the financial condition and management of companies. This analysis considers the Earnings, expenses, assets and liabilities of the company to see whether the share value is on the safe side or not
    The technical analysis considers only the stock's price and volume only. Technical analysts do not attempt to measure a security's intrinsic value. Instead, it uses stock charts to identify patterns and trends.

    drrao
    always confident

  • #149142
    Both analysis work differently.
    Fundamental analysis is aimed to find out the real valuation of the company based on the certain parameters like Profits, assets, reserve, different financial ratios, holdings etc. Fundamental analysis does not give a clue to price change direction or trends.
    While on the other hand, technical analysis mainly based the price movements given in charts of daily, weekly or yearly. Also 200 days or 50 days moving averages , chart patterns, RSI and many aspects are helpful to ascertain the price change direction.

    For a day trading or intraday, one should focus on technical analysis with a weekly charts and news about the company. Look for the global economy and trend.

    For an investor, both fundamental analysis and technical analysis with yearly chart patterns are helpful to get the correct estimation and trend of the price.

    Dr. Paresh B. Gujarati.
    Mechanical Engineer.
    'I'mprovement always begins with 'I'.


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