fundamental analysis and Technical analysis of stock in share market.

FUNDAMENTAL ANALYSIS:
Investing without knowing anything about the company does not mean a good and safe investment. Nobody wants to lose their capital in stock market because the aim of investing on stock is to gain profit. Every investors must have strong  reason before investing in any stock to feel safe. The process of finding the details and strong reason of investment in any stock is fundamental analysis. every investor should have to research about  the fundamental situation of the stock before he/she invest. This is the important factor that helps an investor to take right decision on choosing the stock  for both long term and short term investment. 
As fundamental analysis is a research, the different types of qualitative and quantitative  factors are measure and discussed.  company's fundamental conditions are evaluated by investors before investment and those evaluation process is fundamental analysis of stocks and securities. The real value of any stock is depend on its underline factors like Financial Statements, Management Quality, Industry Trends, Economic Conditions or overall market scenario.
Most important factors of fundamental analysis are as follows:
1. Financial Statements: Financial statements includes 
        a. income statements: it provides how much revenue did the company generate in specific period                                                and what  are its expenses. Income statements shows that the company is profitable or not.
        b Balance Sheet : it describes us how much the company is  financially stable.
        c. Cash flow statement: it gives how much cash  does company have  and how they utilize those                                                      cash like for capital expenditure, dividend payment.
here are some key ratio to calculate the financial statements:
a. Return on Equity
b. Debt to Equity
c. Earning per Share

2. Management Quality: Management's transparent and efficient are the positive signs of the company.it describes how the management team works.

3. Industry Analysis: Industry analysis includes does the company grow or not? how the company is working? what are the aims and goals of the company during past and in future and so on.

4.Market Condition: It includes the research of overall market condition on both at bullish and  bearish market. long term investor decides the company is undervalued or overvalued through fundamental analysis. if the intrinsic value is greater than its current market price then, such company is is known as undervalued and if the current market price  is greater than its  intrinsic value then, such company is is known as overvalued. long term investors use fundamental analysis to predict the future performance of  company.


TECHNICAL ANALYSIS:
 In stock market Investor use Fundamental analysis to choose the stock whereas the Trader  use Technical analysis. person who use technical analysis and trade on stock market is trader. Basically, Trader enter into trading for good profit in short time.  In technical analysis, trader use various components of  market to analyse and predict the up coming trend and price of the stocks. Normally predicting the future price of stock and involving on buying and selling of stocks is trading. To have a good trading skill technical analysis plays the role of indicator. Trader use various components and concepts that are involved in technical analysis to enter into trade for high profit at short time like: candlesticks Charts, indicators i.e (Moving Averages (MA), Simple Moving ,Average (SMA), Exponential Moving Average (EMA),Relative Strength Index (RSI),Bollinger Bands), patterns, volumes etc.

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