Investment in Stock Market: Fundamental and Technical Analysis

C. Murugesan, E. Sakthi Priya

Abstract: Investment openings are plenty, but not all are profitable. This article seeks to clarify the need to make a proper fundamental analysis when investing in various securities. Fundamental analysis does not require one to be a financial analyst so as to detect high risk assets or assets with a good return in the future. Traders typically approach financial markets in one of two ways either through technical analysis or fundamental analysis. Technical analysis uses historical stock statistics, usually price and volume data, to forecast future prices, while fundamental analysis tries to predict a stock's intrinsic, or 'fundamental' value, and looks for opportunities where the live price deviates from the calculated intrinsic price. Well-organized investment involves the use of both fundamental analysis and technical analysis.

Keywords: Investment, Fundamental Analysis, Technical Analysis, Risk, Returns