tECHNCAL VS FUNDAMENTAL ANALYSIS.pdf

tECHNCAL VS FUNDAMENTAL ANALYSIS.pdf

1. ANALYSIS OF STOCKS
➢Stock Analysis can be done in both ways i.e. Fundamental Analysis and Technical Analysis.
➢Lets understand key differences between both analysis.
Basis for Comparision Fundamental Analysis Technical Analysis
1.Meaning Fundamental Analysis is a practice of
analyzing securities by various ratios &
factors of the stock.
Technical analysis is a method of determining the
future price of the stock using charts to identify the
patterns and trends.
2. Relevant for Long term investments Short term investments
3. Function Investing Trading
4. Objective To identify the intrinsic value of the stock.To identify the right time to enter or exit the
market.
5. Decision making Decisions are based on the information
available and statistic evaluated.
Decisions are based on market trends and prices
of stock.
6. Focuses on Both Past and Present data. Past data only.
7. Form of data Economic reports, news events and industry
statistics, Various Ratios.
Chart Analysis
8. Future prices Predicted on the basis of past and present
performance and profitability of the
company.
Predicted on the basis of charts and indicators.
9. Suitable for Long term positional trader. Swing trader and short term day trader.
10. Entry Entry can be done any time. Entry to be done only after confirmation only.