Knowledge Centre

Strategic Market Analysis to Mitigate Potential Risks

Updated on 01 March 2017

It is of utmost importance to analyze the trade before you invest into any company to help you reap better results, and even after you’ve traded your stock to help you learn from the mistakes that you might have made during the course of trading to help you trade better the next time you invest into a stock. There are basically two types of analysis that are being carried out, one is the fundamental analysis and the other is technical analysis of the stocks and the company that you want to invest in. There are various different types of tools for stock market analysis that can be of a great help to the investors.

The fundamental stock analysis involves scrutinizing and having a very thorough knowledge of the financial health of the company you are planning to invest in. The fundamental factors ranges widely from evaluating the revenue of the company over a period of time, the profit of the company, it future goals which helps the investors to have better idea of the actions of the company, the return on the equity and the scope for the future growth of the company. All these factors play a vital role in the investment as most of the investors plan on investing in a firm for long-terms to reap beneficiary results. Our stock trading advisory services keeps all these criteria in mind before suggesting the best stock in the market to the investors.

On the other hand the technical analysis focuses only on the figures. The technical analysis helps the investors to typically evaluate the strength or weakness of a stock and also helps to predict the future growth of the stock. Various technical tools for stock analysis of the market to help identify the investors current wave in the stock market that might be affected by the current happenings in and around the globe in the financial market.

The technical analysis mainly relies on the charts, graphs and figures while fundamental analysis rely on the current and the previous year’s financial statements of a firm to bring forth the expected gains to prospectus investor. Both, the technical and financial analysis go hand in hand and cannot work independently without the other.

Investors essentially go through the financial statements of a firm first and then its current and previous years’ records, scrutinize them completely to determine whether or not a particular firm is reliable and worth investing in. Stock market analysis tools like i-Trend helps the investors determine a reliable stock and help the investors reap better returns from the money they invested.