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Module 2: Fundamental Analysis vs Technical Analysis
Let’s talk about fundamental analysis and technical analysis so as to understand them better. This will help a lot when it comes to decision making on which one best suits our goals and needs:
What They Mean
Technical Analysis: It is a method of evaluating securities by analyzing statistical data generated by market activity, such as historical prices and trading volumes. Technical analysts believe that past price and volume patterns can help predict future price movements.
Fundamental Analysis: This approach involves assessing the intrinsic value of a security by analyzing various factors, including financial statements, industry trends, and economic indicators. Fundamental analysts aim to determine if a stock is overvalued or undervalued.