An Introduction to the Fundamental Analysis and Technical Analysis for Share Market

Expert advisory firms provide accurate Share Market Tips based on fundamental analysis and technical analysis. Fundamental analysis and technical analysis are important parts of stock market. Technical analysis is generally used for short term and fundamental analysis is used for long term investments in the stock market.
We check fundamental analysis about performance and growth speed of that company in future. In fundamental analysis we study different types of facts about that company.
Some terms related to share market are EPS, PE RATIO, BOOK VALUE etc.

EPS (Earning Per Share):
Earning means profit and per share means 1 share. Earnings per share means, profit on each share. If increase in earnings per share is witnessed year by year, it means that company is profitable.

PE RATIO (Price to Equity Ratio)
PE RATIO is used for selection of stocks in fundamental analysis and PE RATIO is used for comparing cheap and expensive prices of share.

Price to book value infers about the book value by balance sheet. If any company is fundamentally strong the price of share will always be more than book value.

Technical Analysis:
In technical analysis stock charts are analysed. Technical analysis is a study in which we look at the moment of price, demand, supply, volume and then decided to invest or not. Stock charts are day by day updated and we can know about day to day price movement of shares.

Types of Chart
1. Line chart
2. Bar chart
3. Candlestick chart

Before investment in stock market we do studies about shares in form of fundamental and technical analysis.

Difference in fundamental and technical analysis

1. Core Study Base - Study of fundamental analysis is all about study of accounting and economics. Technical analysis is study of logical calculation of Maths and depends of chart.
2. Basis of study- Fundamental analysis is based on study of financial strength and financial weakness of stocks in future as well as demand and supply of stocks.
3. Trend and value based analysis-
In fundamental analysis research as well as financial views of stocks is performed to know the real value of stocks. In technical analysis, study of Technical Trend is performed based on last price of stock.
4. Accounting knowledge- If you want to study fundamental analysis, you will need the knowledge of accounting. In the study for technical analysis, you don’t need accounting knowledge. You will need the knowledge of simple maths.
5. Investing purpose and time period-
Main purpose of fundamental analysis is investment for long term of stock. Main purpose of technical analysis is earning profit for short term of stocks.
6. Easiness of Study- Study of Fundamental analysis needs the knowledge of economics, product, management and politics, government policies. Fundamental analysis is a detailed study branch.  In technical analysis you understand last price, data understand some maths and statistics calculations.
7. Based on logical and fact-

Technical analysis is a logical analysis. There is use of logical calculations of maths and study about up and down values of stocks. Fundamental study is facts based study. In this study accounting and economics facts, current market position and its utility is used in determining the price movements.
Thus, fundamental analysis and technical analysis can be used to generate accurate Share Market Tips.

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