Which analysis is more important for investors operating on securities markets? Is a technical or fundamental analysis in your opinion more important for the purpose of making investment decisions, for example on investing in securities valued on stock exchanges?
Fundamental analysis is the basis for making investment decisions for potential transactions concluded on various financial markets, including investments in securities listed on stock exchanges. Many investors operating on capital markets for fundamental analysis add a technical analysis by examining the development of valuation charts for certain securities or other instruments priced on the stock exchange market or other financial markets.
Fundamental analysis is more fully applied by investment funds and investment banks operating on financial markets, including those investing in securities. Investors of institutional fundamental analysis enrich by using also technical analysis before making investment decisions. Individual investors tend to use technical analysis to a greater extent, and less often apply and to a narrower extent fundamental analysis, because in order to carry it out, a lot of information should be analyzed regarding the companies of securities issuers, examining their economic and financial situation, the markets they operate and many macroeconomic data describing the state of entire economies in which the surveyed companies operate.
In view of the above, I am asking you the following question:
- Which analysis is more important for investors operating on securities markets?
- Is a technical or fundamental analysis in your opinion more important for the purpose of making investment decisions, for example on investing in securities valued on stock exchanges?
Please reply
I invite you to the discussion
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For long term investment decision making fundamental analysis would be better while short term technical analysis along with simple quantitative analysis is done by investors (like simple financial ratio....EPS, DCF.....etc)
To determine intrinsic value- fundamental analysis
To buy/sell- technical analysis
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