Types of stock analysis
There are two main forms of stock analysis:
- Technical analysis looks at charts of previous price movements in order to predict future ones
- Fundamental analysis looks at data, both from the company and from its macroeconomic environment, to assess potential profits from trades
Both have the same intended outcome: to make the correct buying and selling decisions and choose the correct times to place trades. Some traders will devote all of their time to technical analysis, some to fundamental analysis, and some to a mixture of the two.