UNDERSTANDING BASICS

STOCK ANALYSIS

Stock analysis is simply a methodology where investors study past and current data to determine the worth of a company. It aids investors in filtering through an extensive wish list of stocks and enables them to make informed decisions.

There are 2 common techniques – Fundamental Analysis and Technical Analysis.

Fundamental Analysis

Fundamental Analysis looks at qualitative and quantitative aspects of a business and helps investors decide if the company is worth much more than its current valuation. This methodology is suitable for investors with mid to long term investment horizon.

Technical Analysis

Technical Analysis analyses past market activities, prices and volumes to determine the future movement of a stock’s price, using the chart. This technique is often adopted by investors with a shorter investment horizon.

To learn more about the indiviual techniques, visit SGX Academy