Fundamental Analysis
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Technical Analysis
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Fundamental analysis refers to the analysis of investment alternatives by calculating the stock value using past and projected financial data.
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Technical analysis is short term analysis of the investment alternatives by analyzing the price movement of security in past to predict future price movements
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In fundamental analysis data are gathered from financial statements such as income statement, cash flow statement etc.
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In technical analysis data are gathered from the Charts, graphs etc such as NEPSE index.
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Stock is bought or investment is made on stock when price falls below intrinsic value.
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According to the technical analysis the stock is bought when trader believes they can sell it on for a higher price.
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Fundamental analysis is Long-term approach.
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Whereas technical analysis is short-term approach.
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In fundamental analysis looks backward as well as forward while analyzing making investment decision.
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Technical analysis looks only backward while making investment decision.
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Sunday, 19 July 2015
Differences between Fundamental and technical analysis
Security Analysis and Investment Management
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