Technical Analysis of Stocks – Introduction

Introduction

There are two basic methods used by experts in order to make investment decisions and place bets on securities:

  • Fundamental Analysis
  • Technical Analysis

Fundamental analysis includes analyzing the characteristics of a company so as to make an idea/estimate about its stock value.

On the other hand, technical analysis doesn’t take into account the value of a stock or a commodity. Technicians are only interested in the price movements in the market.

A technical analyst makes study about the supply and demand of that particular stock in the market employing various technical tools and charts. He tries to determine what direction, or trend, will continue in the future.

Technician makes efforts to understand the market emotions by studying the market itself. He considers the fact that all the fundamentals of a company are inherent in the stock already and hence, what makes real sense is to make an estimate about its movements in the market.

In this tutorial, we’ll introduce you to the subject of technical analysis.  We’ll introduce various details in forms of chapters.

Ashish Pandey

I am a business journalist who is currently employed at Zee Business. My areas of interest include business and foreign policy. You can reach me on Twitter at @ashuvirgo1984 or @eFundsPlus.

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