Basics of stock analysis

Stock price in the market changes with respect to the demand and supply. There are two types of analysis in the stock market namely fundamental and technical analysis. Fundamental analysis requires a lot of research were you need to know the in and out of the company, were you study the annual report, profit and loss, cash flow, balance sheets.This analysis is useful from the prospective of long term investment.Technical analysis involves studying of charts and it is easier to understand as it is in graphical form.It is always better to stay away from news in the media because before us it would have gone through the big hands and the retail investors like us are probably the last person knowing the news. Better to go in trend with the market.Many people avoid penny stocks because it comes with high risks and the chances of that company going bankrupt is more.Line charts are used to know the trend in the market.Candlestick charts are useful in knowing a particular day market in greater detail.