Fundamental and Technical Analysis

The Difference Between Fundamental and Technical Analysis


 Fundamental and Technical AnalysisDifference finding a good performing company in one sector is not an easy task. To find a good shares on some sector you need to analysis all the shares of that peticluar sector and its a very difficult task to do. Taking investment decisions on following the market rumors and attached to emotions are really dangerous and you may lose all your hard-earned money from it. By considering the correct analysis method and  buy the share at correct market price and sell them on correct time can reduce the risk of loses  of share market investment and you may also able to increase the probability of gain profit. For that there are two major analysis method uses in widely in  Share market which well-known as Fundamental and Technical Analysis.

Fundamental and Technical Analysis are two completely separate analysis because the data’s which we use for technical analysis is completely different from the data’s which we use for fundamental analysis.

In Fundamental analysis the main data’s which focused is on the financial statements of the company, but in technical analysis we use the data’s of price change and deferens chart analysis to predict the future market value of the share.

Unfortunately most of investor’s don’t use any of these analysis methods (Fundamental and Technical Analysis) to take their investment decision and most of them follow the market rumors , what other do and fall in to trap and lose their hard-earned money.

Even some earned money from wild guess or following the market rumors the money which they found quickly get vanished because share market not only depend on the luck.

This is very unfortunate situation and most of the people lose their faith on share market due to lack of knowledge of Fundamental analysis and Technical analysis.

Most of investors use Technical Analysis for short-term and mid-term investment strategy and for long-term investment most of the investors use fundamental analysis.

Compare with Fundamental and Technical Analysis , Technical analysis is little bit risky and these analysis is not recommended for beginners.

In this article we are trying to focused and show the type of leading market analysis available in the market and to reduce the risk of share market by being focused and get the most suitable investment decision.

We are plan to focused more on technical analysis and fundamental analysis separately in our future articles under “Market Analysis” category .

For more information s on Fundamental ,Technical Analysis or any other analysis method please visit “Market Analysis” of our website.