Fundamental analysis is the real analysis that is carried out by serious technical analysts around the world. The goal is to determine the company’s health and performance from which one can take decisions, the analysis involves lot of key factors relating to the company like profit margins, debts, sales growth percentage, market share, etc., which makes this a very reliable analysis.
Pros:
Results of Fundamental analysis are more concrete which makes them more reliable.
Cons:
It involves lot of resources which cannot be afforded by general public.
Time-consuming,
Only sound sources and perform a complete fundamental analysis over a company.
What is the input (Data required) to do fundamental / technical analysis?
Inputs for fundamental analysis involves strong insider reports, profit margins, liabilities, expenses, assets, sales growth percentage, market share, etc
Inputs for technical analysis involves demand and supply data, price, and volume.

Technical analysis is a process of evaluating a company with its price and volume movements. There are various theories and charting patterns available to further support the forecasting.
Pros:
-We can determine precise entry and exit points.
-Easier for common man to do.
-Market is pre-dominantly driven by the emotions of the participants which is quite easier to forecast from the volume, price trends along with so many available theories.
Cons:
-The pro can also be a con, as the market is driven by emotions there is chance of participants to overreact or under react to a situation, thus there is chance for failure.
-The volatility itself is a enemy when it comes to technical analysis.
-Tech. analysis is performed based on the previous historical data, price and volume changes but there is a possibility the inputs can mask the true health of the company itself.

2 Comments
  1. vignesh 6 years ago

    Hi,
    your answers are brief and well framed.

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