Pillar Of Stock Building

Analysing a company in details is know as fundamental analysis. Both qualitative and quantitative measure will give some idea about future plans and earnings of the company. Based on analysis forecasting of price will made. Instead of analysing a company following the past market is called as technical analysis. What is happening now will help to decide the market direction. price and volume are the key factors for the technical analysis. Technical analysis mainly used to find supply and demand. Most of the qualitative analysis about company will reach stronger hands prior to retail investor. And this make retail investor loose money. News about company will reach retailers later compare to the stronger hands. Other than that fundamental analysis is stronger one compared to technical. And this can be used for long term perspective. Data required are easily available and reliable. Easily understood with some basic knowledge. It gives a idea of entry and exit price. It cannot effectively be used for the long term investment. It requires years of experience to exactly determine the right movement of the market. There are three types of chart. Line, Bar, Candlestick chart. Line chart will be used for longer periods, Both Bar and Candlestick charts are used for short period.