Beside looking at Technical Analysis which looks at the trend of past events to forecast future events, long term investors may also want to look at Fundamental Analysis.
In many books and papers, Fundamental analysis is often presented as an direct opponent of Technical analysis. Typically the introduction would focus on the drawback of one method and highlight why the favored method is better.
Do not be confused. It need not be this way.
Fundamental analysis can co-exisit prefectly with Technical analysis. I often use both of them in my investment analysis. Oftentime while looking at the chart, I would also look at how the fundamental factors like the economy and market looks like.
In order to use them however, you would need to understand how each of them is applicable and to use them to the fullest effect.
I did some introduction to Technical Analysis and now let me do the same with Fundamental Analysis.
Continue reading ‘A visit to Economic class and Fundamental Analysis’
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