Fundamental vs Technical Analysis – Which One Should You Learn First?
Fundamental vs Technical Analysis – Which One Should You Learn First? When entering the stock market, one of the first decisions you face is: should you learn Fundamental Analysis or Technical Analysis first? Both approaches are powerful, but they serve different purposes and suit different types of investors. 📘 What is Fundamental Analysis? Fundamental analysis involves evaluating a company’s financial health, business model, earnings, management, and industry position . The goal is to determine the intrinsic value of a stock and see if it’s undervalued or overvalued. Key factors considered: Revenue and Profit Growth Debt Levels Return on Equity (ROE) Industry Trends Management Quality Example: An investor studying Tata Motors ’ annual reports, product plans, and profitability over the last 5 years is doing fundamental analysis. 📈 What is Technical Analysis? Technical analysis, on the other hand, involves studying price charts, volume pat...
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