EQSIS PRO

FUNDAMENTAL & TECHNICAL ANALYSIS

*Fundamental analysis is to study the qualitative & quantitative of company in depth i.e,revenue, profit, assets, liabilities,number of employees, growth rate, clients,new projects.
*In practice only stronger hands have access to it.
*pros-Fundamental analysis is reliable & accurate.
*cons-*Information is not available to everyone,only stronger hands of company have access to it & for common retailers it is difficult to obtain information
.*It requires more time, money.
*Technical analysis is to study the market direction of stock,in order to identify demand and supply.*The inputs of technical analysis is traded price &volume which is transparent to everyone.
*It is used for short term trading.*Pros-*Inputs required for technical analysis(traded price & traded volume)are transparent to everyone.*One can identify entry & exit places of stock.
*Cons-*It is not suitable for long term investors.
*It is not of much accuracy compared to fundamental analysis.
*Stock price is driven by demand & supply.*The price quoted by buyer & seller varies frequently depending on demand & supply.so,the price changes very often.*Other factors which contribute for change in stock price is natural calamities,political factors,news(important announcement,results),company performance e.t.c
*The inputs required for fundamental analysis are revenue, profit,company performance, future plans, balance sheet, number of employees , clients e.t.c.
*The input required for technical analysis are traded price & traded volume which is transparent to everyone.
*Line chart-connected with lines on daily traded prices(suitable for yearly basis)*Bar chart-It indicates opening & closing price of share,high and low of each day.
*Candlesticks chart-It is modified version of bar chart but easy to understand.It denotes volume with colour part to represent bearish and bullish movement.
*Intraday chart-Gives information within a day(one day).

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