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Technical Analysis v/s Fundamental Analysis

So What do YOU people think who’s gonna win over whom !

Will technical win over fundamental analysis or vice versa.?

We might hear different opinions as there are different perceptions in this world . Some might say technicalities can help in a better way on the other hand some people might think fundamentals have more weightage than technicals.

Let me be clear about this with you people. According to me both have their own importance, it is nearly impossible to decide whether which one from the two of them is more important or carries more weightage in deciding the stocks.

How about firstly we talk about some facts related to the stock market.

The main thing that drives stock market or any other market are the sentiments . There are two types of sentiments FEAR and GREED. There is always fear of losing the money and greed of earning more right? Keeping in view these sentiments many people actually lose money in greed of earning more in less time. 

The principal of success is DISCIPLINE AND PATIENCE 

So Let us know today the roles of both ( technical and fundamental ) analysis .

Let’s start with the fundamental analysis .

Fundamentals of the company play a crucial role in deciding whether the company is great , good or average according to the requirements. This actually depicts the image of the company. You do not need a commerce background for reading the fundamentals of a company. 

Fundamental analysis or financial statements  include annual report, income statements , balance sheet and cash flow statement. Income statement shows what all profits or losses a company has made YOY ( year on year ) or quarterly , what is the gross and net profit of the company , whereas the balance sheet shows all the assets a company has and all the liabilities it contains. Cashflow depicts the cash that has flown in and out in the company. Annual report tells us about the management and what all the company has been doing during the whole year. 

So by reading and analysing the data of the company we can decide whether this company will give us a good amount of return on our capital or not.  Also after knowing the fundamentals we can see what the company has been doing in the past and make a clear vision about the company. Has it been increasing its profits and revenue and has it been decreasing its liabilities? 

So this is all about the fundamentals of a company in a little detail. 

Now let’s move to technical analysis 

This is something that you need to study about in order to become a precise decision maker and have a clear vision of the direction of the stock. 

Here are some terms included in technical analysis. 

  1. Candlestick patterns
  2. Price action 
  3. Price indicators 
  4. Moving averages and many more

These are some tools that help us locate the direction of the price and with the practice of these tools we can become a pro investor who can see at what price to buy and at what price to sell. 

After studying properly we need not take advice or tips from someone for our guidance. 

You can also read books that will help you out , how to manage your portfolio or how to manage the psychology during trading. If you need any help related to this topic you can write in the comments and can also mail us. 

Read this book , this will really help you out in beginning your journey in stock market

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