Basics of Stock Analysis

Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. For Technical Analysis mainly two data are required, Price and Volume. Whereas for doing Fundamental analysis there are huge amounts of data required namely Industry Analysis, Govt Proposals, Promoter history, combination of Board and their past record, Earnings report, financials etc. Technical analysis is relatively easy to do as compared to Fundamental analysis. Data for doing this analysis is readily available for anyone. Cons: Since it focuses only on the demand, supply & price movements, it is not completely reliable as compared to Fundamental analysis. Penny Stocks are too volatile and largely operator driven, manipulations are done by the operators which make these stocks highly risky. There are multiple types of charts available namely, Line Chart, Bar Chart, Point & Figure chart, Candlestick Chart. Out of all the chart types, candlestick chart is most useful since it gives importance to the Four main data points namely, Open High Low Close and the it represents the strength of Bulls/Bears at any given point of time.