In stock market analysis,
there are two major schools, fundamental analysis and technical analysis.
Fundamental analysis is the traditional way of analysing a stock. In technical
analysis you try to predict the stocks movement by looking at the historical
data. The thought is that history will repeat itself. Technical analysis does
not work in reality. By looking at a chart, you can see how a stock has moved
in the past. But to use this information to predict the future is a waste of
time. Fundamental Analysis becomes a necessity to determine the company’s
present status. Technical analysis methods are very popular but if you rely on
technical analysis you might as well use astrology to forecast the markets.
No comments:
Post a Comment