Fundamental stock analysis requires, among other things, a close examination of the financial statements for the company to determine its current financial strength, future growth and profitability prospects, and current management skills, in order to estimate whether the stock's price is undervalued or overvalued.
Technical analysis is the evaluation of shares by means of studying statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value but instead use stock charts to identify patterns and trends that may suggest what a stock will do in the future.
In the world of stock analysis, fundamental and technical analysis are on completely opposite sides of the spectrum. Earnings, expenses, assets and liabilities are all important characteristics to fundamental analysts, whereas technical analysts could not care less about these numbers. Which strategy works best is always debated.I personally analyse shares using a mix of fundamental and technical analysis.
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2 comments:
y dont u examplify this with an example...,
plz apply ur analysis to a particular stock n show..,
it'd be helpful to beginners like me!....
Good one, Furkan. Please keep adding on these topics. I would love to read them.
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