Stock Analysis is a major factor in share market. Stock investors should have the knowledge about basic stock analysis methods to analyze the stock effectively. Here, some brief explanation about the basic 'Stock Analysis'. It will be helpful to the beginners who want to be expert in 'Global Stock Market'.
Stock analysis is an analytical method used by the investors and traders to make buying and selling decisions. By evaluating and studying current and past data, investors and traders attempts to gain an edge in the markets by making informed decisions.
Stock analysis is a term that refers to the evaluation of a particular trading instrument, an investment sector or the market as a whole. Stock analysts attempt to determine the future performance activity of an instrument, sector or share market.
There are two basic types of stock analysis
- Fundamental analysis
- Technical analysis.
Fundamental Analysis
Fundamental analysis concentrates on company data from sources including financial records, economic reports, company assets and market share. Fundamental analysis takes a relatively long-term approach to analyzing the market compared to technical analysis. Fundamental analysis often looks at data over a number of years. In general, fundamental analysis is used to make an investment.
Technical Analysis
Technical analysis focuses on the study of past market performance data to predict future price movement of the stock using various technical indicators like moving averages, relative strength index, MACD, chart patterns, etc.,. Technical analysis can be used on a time frame of weeks, days or even minutes.In general, technical analysis is used for a trade.
Hope you gain some useful information .
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