Basics of Stock Analysis

There are two types of Analysis they are Fundamental Analysis and Technical Analysis. Fundamental Analysis is studying the company in details like Market Share, Customer base, Sectors catered, Quality of Delivery, Profit, Assets, Loans, Management ability, Taxation Policies, Import & Export policies, Environmental policies, Employee Satisfaction level etc. Both Quantitative and Qualitative factors need to be considered for analysis. Technical analysis focused on studying market rather than company. Identifying Demand and Supply through Price and Volume is known as Technical Analysis. Technical Analysis helps identify trading opportunities using actions of Market Participants through charts, patterns, and indicators. News , Earning and Analyst report has impact with the stock price. As People tend to behave i.e buy or Sell the stocks when they hear good news or bad news , Earnings which the company made or even when they read analyst report/ ratings . even they react to famous traders trading behaviour. It is better not to react according to the news published in the newspaper. These news are outdated while publishing. The different types of charts are line chart, bar chart and candlestick chart. Candlestick chart is use full for intraday traders. which is very easy to identify the current market long/short with volume.