What is fundamental analysis and technical analysis and which is a better option for choosing a stock?
Fundamental analysis is an approach of finding the intrinsic value of the company based on its performance. A fundamentalist generally have a top-up or a bottom up approach of analyzing. Technical analysis generally believes share price as a sole determinant of the companies performance. Technical analysis is a dynamic strategy through the study of charts and the patterns in forecasting price. It is preferable to choose a sector or a company using fundamental analysis. For market timing (entering or exiting a stock) technical analysis can be used.
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