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Investment Opportunities Fast Facts, Last Updated:09/09/2010 To try to identify good shares to invest in, two main schools of
thought exist: technical analysis and fundamental analysis. The former
involves the study of the price history of a share(s) and the price
history of the stock market as a whole; technical analysts have
developed an array of indicators, some very complex, that seek to
tease useful information from the price and volume series.
Fundamental analysis involves study of all pertinent information
relevant to the stock and market in question in an attempt to
forecast future business and financial developments including the
likely trajectory of the share price(s) itself. The fundamental
information studied will include the annual report and accounts,
industry data (such as sales and order trends) and study of the
financial and economic environment (e.g. the trend of interest
rates). |
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