Technical Analysis vs Fundamental Analysis...

Hello,

Reading of a stock like equity, commodity, means analysing the prospects and scope of the same. It is studying in detail the promising and weak factors of the same.

The analysis of a stock can be done either by Technical Analysis or Fundamental Analysis.

Technical Analysis means analysing Stocks on the basis of some data or statistics and jotting them on a graph / chart and predicting the future of that stock....

Fundamental Analysis means Analysis os a stock on the basis of the financials of the company, growth /scope of the stock, based on Accounting Figures..

I have learnt basics of both types of Analysis.. But, over a period in my career, my affinity towards Technical Analysis has grown more over Fundamental. 

In India, after the Satyam Computer Scam episode, I lost my faith on accounting Analysis, as it can be manipulated. 

You may say, the manipulation can reflect in prices of the stock, so how technical analysis would go right.

I would like to share my learnings and experiences about the Facts of both Analysis.

Technical Analysis Secrets by me are - 

1. Technical analysis funda is the same for everyone to know, still why I achieved another level of expertise but I understood the hidden analysis of Human behaviour pattern on it.

2. Like not every businessman becomes Ambani or Bill Gates, but every perosn can work on becoming the 'Out of the box Thinkers' ... So try to read between the lines 

3. There are so many types of Chart reading Patterns, but I feel master one and find your own and Study it thoroughly.

4. The only shortcoming in Technical Analysis is it will give great results, if one has a longer time frame for the data of stock to be analysed. It will struggle for a newer stock in market, with lesser data.. (Here is where, Fundamental Analysis plays a major role)

5. I mastered one type of Technical Chart reading, but over the period, utilised combination of 2 -3 patterns to give effective results.

Fundamental Analysis Secrets by me are :-

* It is the best for future prospects of a price of a stock.

* You need to be Accounting sound, but more than that, Statistically sound in various accounting ratios.

* Read, listen to anything related for a stock by the company owner itself or if it's a commodity, learn the properties properly and do an in-depth study of the same.

* Learn from other Analysts and follow which you feel better as a yardstick for your own growth in Analysing anything.

* The major drawback of Fundamental Analysis of a stock & particularly an equity is Hidden Facts or Manipulations of the True & Real Picture.

Hope this post was helpful to you. Share within your circle, who has an inclination towards Analysis of stock.

Thank you and keep commenting as to what you would like to see in my blogs...