Having understood all the basics of the stock market and the risk
involved, now we will go into stock picking and how to pick the right
stock. Before picking the right stock you need to do some analysis.
There are two major types of analysis:
1. Fundamental Analysis
2. Technical Analysis
Fundamental analysis is the analysis of a stock on the basis of
core financial and economic analysis to predict the movement of stocks
price.
On the other hand, technical analysis is the study of prices and
volume, for forecasting of future stock price or financial price
movements.
Simply put, fundamental analysis looks at the actual company and tries
to figure out what the company price is going to be like in the future.
On the other hand technical analysis look at the stocks chart, peoples
buying behavior etc. to try and figure out what the stock price is
going to be like in the future.
In this article we will go into the basics of “fundamental
analysis”. Technical analysis is a little more complicated. It is
much more of an "art" than a science. It depends more on experience and
involves some statistics and mathematics, so explaining technical
analysis is out of the scope of this article.
Next - Basics of fundamental anallysis! >>
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Table Of Contents
- What are stocks?
- Why do companies issue stocks?
- What causes stock prices to change?
- What are the Sensex and the Nifty?
- 3 important things that every new investor MUST know!!
- How to decide which stocks to buy?
- Basics of fundamental analysis!
- Earnings per share (EPS) ratio and what it means?
- Price to earnings (P/E) ratio and what it means?
- PEG ratio and what it means?
- Inflation and how it silently eats your money!
- Brokerage and taxation…