Classification by Methods of Stock Analysis

Kuants
Kuants
Sep 5, 2018 · 2 min read

Fundamental Analysis

Fundamental Analysis refers to investing or trading based on the core stability of a company with is reflected in its financials like revenue, income, net profit, capital expenditure etc. The core genesis is to identify a company that is stable and has high prospects of consistent growth in the future. It can be used to identify both value and growth stocks.

A list of popular company financials is as follows:

  • Revenue
  • Retained Earnings
  • Total Current Liabilities
  • Non-Current Liabilites
  • Short-Term Debt
  • Long-Term Debt
  • Total Non-Current Assets
  • Inventories
  • Cash And Equivalents
  • Goodwill
  • Amounts Receivable
  • Amounts Payable
  • Operating Expenses
  • Profit before Taxes
  • Cost of Goods Sold
  • Net Revenue
  • Net Income
  • Capital Expenditure

Technical Analysis

Technical Analysis is trading activity based on study of recent movement of stocks, i.e. whether the stock is moving up or down. The price-volume data like Opening price, closing price, the high or the low of a stock for a particular time frame ranging from a minute to a day are considered before making any trade.

It usually falls in the short term trading activities which can be intraday or a weekly holding activities. Mostly the key decision to buy or sell is made based on what is called “Technical Indicator”. These are fixed formulas which have a particular value. Basing on that value leads to a decision. It is very important to note the logic behind a particular technical indicator.

Without have the key knowledge of the logic behind in indicators might lead to lack of innovation which holds the key in the stock markets. A list of popular technical indicators and their definition is given in the next section

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