When investors are buying more stocks (high demand) its price will go up. When investors are selling more stocks (high supply) its price will fall.
price changes so often because of competing buyers and sellers in the market.
FUNDAMENTAL ANALYSIS: requires Quantitative and Qualitative information about the company.
PROS:
*company can make better profit as they study the given data about the company thoroughly.
*long term investment.
CONS:
*requires complete information about the company which is very expensive and are available only to influential hands.
TECHNICAL ANALYSIS: demand/supply and volume knowing the market.
PROS: data is available to everyone.demand/supply and volume can be understood following the market.
CONS: not suitable for long term investment.