Stock analysis is a system of evaluation and determination of the value of stock. Stock analyst used latest market charts and software to prepare stock news for futures buying and selling procedure.
By learning about the market current situation, past data, an advisor do analyse about the market to provide best stock tips to the traders with the aim to boost their profit in the market.A market analysis is a most important task to ascertain future movement of the stock. Many financial advisors use the latest software to analyse about the stock market for the preparation of trading tips which is to be provided to clients.
Types of analysis in stock market
1.Fundamental Analysis – Fundamental analysis is a type of analysis done by the financial expert based on various factors like the current performance of the company and their economic conditions.This includes talking with the higher management team and evaluating how well their products are performing in the market, it is basically a method to ascertain the overall market performance of a company.
Fundamental analysis also knows as quantitative analyse because the goal of this method is to consider all financial statement of company this involves looking at liabilities, revenue, expenses etc.It focuses income part of a company.
2.Technical Analysis – Technical analysis evaluate the recent activity of a stock and determine what’s next for a company. Technical analyst pays less attention toward fundamental analysis.This analysis includes examining past activities and changes in prices of a security and forecast price value of a security accordingly. It is generally evaluating the supply and demand of a company that forces are reflected in the price of a security. Financial experts use charts and latest techniques to do technical analysis.A technical analyst looks for support level and resistance level for ascertaining stock’s next movement.
3.Sentimental analysis – Sentimental analysis based on the attitude of the investors, their behaviour and attitude toward particular stock in the market. It is a type of analysis which is based on the opinion of investors, their emotions, sentiments and attitude. In a market research sentimental analysis for the stock market has been done to predict the price of the stock which is based on people’s advice or opinion and financial advisor and their research team provide market calls suggestions according to the result of the analysis.
Which analysis is best? There is no specific answer for this query, this is clearly based on the goal of investigation of stock analyst. Keep one thing in mind that there is nothing constant in the market, it always changes and fluctuates.Market conditions always change and prices of stocks also change accordingly, an investor has to be alert while trading in stocks for this he can take suggestions like stock tips and stock futures tips from a financial advisor.