Stock Analysis – Basics

Price of the stock derived from the demand and supply of the stock. If the stock have more demand then the price will increase. Since all buyers and sellers are negotiating in the counter, the price changes rapidly.Fundamental analysis is finding the Profit earning ability of the company. we need to analyse the capital and strategy and various other parameters. Based on the inputs we can derive the profit earning ability of the stock. Technical analysis is deriving the demand and supply from the price and volume of the stock. Based on the demand and supply we can decide the trend of the stock. we can do a technical analysis through dow theory, price patterns and candle stick analysis.