- This topic has 373 replies, 369 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
Analysis is the prerequisite for trading. Analysis helps the traders to logically derive the movement in stock price and further trade. There are 2 types of analysis namely fundamental analysis and technical analysis.
Trading happens after analysis.
trading refers to actual buying and selling of shares.Analysis is the theoretical following of market’s demand and supply, stock quantity, risk and returns etc. After analysing, the actual buying or selling of stock are called trading. In plain words, analysis is thought process and trading is the action of it.
Analysis goes through various sections and different angles. Analysis is like preparing for an exam or like sharping a sword. Trading is like writing the examination. or Start to cut a tree. Analysis tells what to do and how to do it. Trading tells like when to do what. or act according to the movements of the market.
Analysis (long-term investments) refers to all those factors which have an impact on the stock price of the company in the future, such as financial statement, management process, industry, etc. It analyzes the intrinsic value to identify whether the stock is under-priced or over-priced.
Trading (short-term investments) uses charts, patterns, and trends to forecast the price movements in the coming time following past data only.
- You must be logged in to reply to this topic.
