Trading in Stock Market requires financial literacy. Market can be volatile. Investors' education is a necessity.


Saturday, April 12, 2008

Fundamental and Technical Analysis

FUNDAMENTAL AND TECHNICAL ANALYSIS

Putting your hard earned money in an investment without a tool is like placing it as a casino bet where you have no control and leave the result to luck.

Let us take up the tool / ratio used by investors.

We have two tools.


1) Fundamental Analysis
2) Technical Analysis

Fundamental Analysis is a strategy where stocks are picked based on the value of the company and how good is the financial performance of the company doing.

Technical Analysis is a strategy where stocks are picked based on the movement of the price of stocks on the market. This is where the market trend is determined. Is it uptrend? Is it downtrend?

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