Tuesday, April 7, 2009

Technical Analysis vs Fundamental Analysis

Technical Analysis involves looking at charts and patterns associated with a stock's historical price movements to try to profit from predictable patterns,regardless of fundamentals such as revenue growth or expense trends.Fundamental analysis of a stock involves using financial analysis to analyze the company's underlying business,such as sales growth,its balance sheet,etc., to decide whether and when to buy and sell.The most common forms of fundamental analysis involve the traditional valuation techniques (DCF,multiples analysis)as well as the various accounting and financial statement analysis.

No comments:

Post a Comment