Understanding Analysis using Fundamental Analysis and Technical Analysis.

Learning of stock trading was done in the previous chapter. This chapter explains the basics of analysis. There are two types of analysis, one is fundamental analysis studying about a particular company including the macro environment and micro environmental factors affecting the company and its stock. Two, technical analysis, studying about the market as whole by using price and trading volume. This sections also describes about the advantages and disadvantages of both fundamental analysis and technical analysis. Investors who prefer for long term investment can use fundamental analysis and Investors who prefers to do a short term investment can make us of technical analysis. This section also gives a glimpse of charts available to do technical analysis.