Technical Analysis VS Fundamental Analysis

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Technical Analysis VS Fundamental Analysis

In previous blogs we have seen about Fundamental Analysis and Technical Analysis in this blog we will see the difference and we will compare both with a different perspective

In the fundamental analysis, we do a fundamental check of the company based on past performance but there are some limitations we can forecast the performance of the company but we can’t be sure and it’s very hard to give surety about the market buyers and sellers we can predict the future trend of the market for long term. If we want to invest in the short term we can’t able to predict the short-term trend of the market with only fundamental analysis.

But if we consider technical analysis based upon charts, indicators, Patterns in different time frames then we can predict the market sentiments in shorter to the long-term trends in the market so we can say if the company is strong fundamentally it will reflect it on the market demand of share for long term but it can be also observed with technical analysis. Technical analysis will fill the gap between what will be and what it is. with both this analysis our mental analysis is also very important in which we have to understand the psychological analysis of the market. sometimes some institutional investors can temper any specific stock with their financial ability so we need to understand the market psychology where their metal resistance and supports are existing with respect to the price of a specific stock

 

Thank You

Comments

  1. Unknown20 October 2021 at 12:08

    Thanks for such an informative post! Could you also make a detailed post on the Types of Traders in Stock Market

    ReplyDelete

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