Friday, March 21, 2014

Technical analysis and fundamental analysis

Analysis of the technical and analysis of fundamentals are two main approach in the financial market.Analysis of the technical see the movement of prices for securities and use these data to predict the price movements in the future.The analysis of fundamental, at the other side see economic factors, known as fundamentals.

the defferent:
1. Graph vs. financial reports at the level of the most basic sense, a person who uses technical analysis start the analysis by using the approach chart, while it is a person who uses fundamental analysis started, gave his approach by following the financial news (financial statement)
By looking ' s news of cash flow profit and loss statement, an analyst fundamental tries to determine the company.In financial matters, analyst trying to measure intrinsic value company.Example might be used to this approach e.g. for making an investment decision, if prices stock trading below the value this intrinsik  , that this means is a good investment.
A technical trader, on the other hand, believes that there is no reason to analyze company fundamentals because all counted in the stock price. A technical analysis believed that all the information they need about the stock can be found only in the graph.

2. fundamental Analysis time frame takes a relatively long approach in analyzing the market compared to technical analysis. While technical analysis can be used in a period of a few weeks, days or even hours, while fundamental analysis often see data within a few years.
Differences skeleton time used in two approaches is produced for familiar style that traders use, and then accumulates until eventually were brought our main 2 groups kind of analysis, tekhnikal analysis and fundamental analysis.As for example in fundamental analysis, need the time which long enough to see a the company terproyeksi on market, so when a fundamental analysis of estimating value instrinsik, and there would be obtained approximate value until stock price in market value reached exactly.
In addition, the figures are produced from an analysis of fundamentals just released in long periods of time.Financial statement submitted per quarter and changes in the profit per share not appear every other day as prices and information volume.The reasons why an analyst fundamental need the time which long enough to produce analisanya is because the data they use to analyze stock, produced much slower price or volume of the data used by tekhnikal analysis.


Trading vs investment analysis tekhnikal
 not only need the time which is short compared to the analysis of fundamental, the difference also lies on goal or purpose of a buying ) ( or the sale of a stock / stock that is usually different for each this approach.
In general, used for trading, technical analysis while fundamental analysis used to make investment.Investors buy a assets they believed that if the values will rise, while a trader if buy a assets they believe that they can sell them to others with prices higher.A line of the difference between trade and investment is a little blur or not so firmly terbedakan, but obviously a the fundamental difference to the two things.

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