Stock Analysis

Finding out how to get a good return on your investment does not have to be nearly as complicated as you might think. In fact, anyone can learn how to properly analyze stock in order to build equity

Stock analysis is also referred to as stock research or stock market research. The purpose of analyzing stocks is simple: to maximize your return on investment while at the same time minimizing your risks.

Stock market research is typically done using either fundamental analysis or technical analysis…or a combination of both. Traditionally fundamental analysis has been the mainstay of stock analyst around the world. These analysts research such things a company's management team, price-earnings ratio, as well as a host of other fundamental factors.

Technical analysis analyzes price, time, and/or volume. Technical analysis has grown in popularity among individual stock traders as well as large financial institutions. In the past, stock market price data and real-time stock quotes were prohibitively expensive for the individual stock trader. The increasing popularity of the internet has made the delivery of stock data much simpler. This essentially allows almost anyone with an internet connection global access to stock prices.

The choice of whether to use fundamental or technical research in your stock analysis is a personal one. There is not necessarily a right or wrong way to obtain profits in the stock market, only profitable or unprofitable ones.

Technical analysis is an excellent way to analyze stocks. Don't be discouraged by the use of the word “technical” as many high-effective technical analysis techniques are actually quite simple. In fact, some of them are so simple that anyone who applies themselves will find them very easy to master.

Stock market technical analysis typically begins with simple stock chart analysis. By looking at stock charts you will be able to see that there are certain simple patterns which repeat themselves time and time again. It is these repeatable patterns which can be used to for the basis of a stock trading system. A stock trading system is a set of rules that you have desigend specifically to profit in the stock market. The goal of technical stock market analysis is for you to have a stock trading system designed for long-term profit in the market.