Understanding market and the change in ways of analysis
Market analysis is a fundamental aspect of investing in the stock market. Where globally around 44% of people derive financial benefits by investing in the stock market, it’s just a shocking 2% in India. This is due to a lack of investing without an in-depth analysis of the stock market and lack of adequate training. Today with the advent of technology the percentage among Indian investors is booming.
The market analysis and its valuation in the context of the stock market, is a systematic examination of the market in order to determine the intrinsic value of securities prior to investing. Investors can achieve a competitive advantage in the market by using fundamental and technical research. The financial performance of the entity is the subject of fundamental research. Balance sheets, revenue statements, and cash flow statements are examples of financial records. For fundamental analysis, notes to accounts are an essential metric. Investors may use ratio analysis of financial statements to determine a company’s liquidity, solvency, performance, and leverage. Four of the most relevant ratios for fundamental analysis are Return on Equity, Debt to Equity, Earnings per Share, and Price to Earnings.
Technical analysis deals with the trends in the market with respect to past trends and the prediction of prices in the future. With the help of such an analysis, investors can predict the sharp rise or fall in prices of a particular share and identify whether a particular stock is undervalued or overvalued. Investor’s psychology plays a huge role here. Bar charts, candlestick charts are used in technical analysis to study the pattern and fluctuations of stock prices.
All of this sounds a lot difficult to understand but we all as investors want to avail the benefits of it. Hence to keep you away from the stress of calculating and documenting, technology has built an easy way. Today there are digital tools like a scanner, blogs, podcasts, and advisory are available at any time. Apps and websites like marketpulse and market research, help in step by step understanding.
Apps like marketfeed and Unfinance aim to simplify investing and analysis with their in-depth and unbiased approach. They help the investors to invest intelligently and make investing more rewarding. Moreover, for budding investors and entrepreneurs, these tools come really handy. Today investing is not only restricted to banks and other financial sectors. It has become a jungle of potential stocks. Hence technology becomes essential and helps screen out the best that is suitable for you. Keep track, it has become easier and yet is also comprehensive to invest in a company.
Market analysis today has never been easier than ever. From the time where you had to sit down and roll out the charts to the time where you get live-tracking charts has been a journey of overwhelming ups and downs in the market. But for the most, what is even the better metaphor for markets other than a roller-coaster ride?