August 16, 2022

World Trades

Finance Blog

Want to be an Expert Trader? Try Technical Analysis

3 min read

Newbies are often wary about stepping into the world of investment, because they’re concerned about the notable losses they may suffer if the stock market tumbles, especially in times of crisis. However, if you invest judiciously, nothing can prevent you from making a profit. 

It is imperative to mention in this context that the Sensex wiped off a solid 42.5% gain in the past year, while NIFTY 50 witnessed a 45% surge in the same timeline, amidst the economic adversities offered by the COVID-19 pandemic. So, one must not get dissuaded from investing in the bourses, instead, the need of the hour is to have hands-on-knowledge for conducting proper analysis of the stocks. If the stock market has survived and remained afloat facing the pandemic’s challenge, just imagine the profits it can offer in better times!

Now, many traders go for fundamental analysis while asserting whether a stock is profitable or not, while some use technical analysis for the same. It is a consensus that one can learn technical analysis for a short-term investment, while fundamental analysis is used by traders for long-term investment. 

Delving deeper into these two types of stock analysis techniques, we see that when you learn technical analysis, it involves the study of price charts, patterns, and trends to project a company’s possible short-term share price movement. So, an analysis of past trading volume and price changes of stock plays the part of the primary influencer in choosing a stock, under purviews of technical analysis. 

On the other hand, fundamental analysis is a much more intensive technique of equity analysis, wherein a trader tries to find out a stock’s intrinsic value through studying its operating results like revenues, profits, assets, etc, along with considering the impact of macroeconomic events on that stock’s price movement. So, if you want to hold on to a particular stock for some time, you should learn fundamental analysis. 

Where Can We Learn Technical/Fundamental Analysis?

Considering the aforementioned discussion, the first thing that can come to one’s mind is where to learn technical analysis or fundamental analysis. As e-learning is gaining widespread popularity amid the pandemic situation, there are a handful of platforms from where you can learn these stock analysis strategies, from the vicinity of your home, like Elearnmarkets, Udemy, Coursera, EduKart, and a few more. It is advisable to take informed decisions when it comes to investment of your hard earned money.

These platforms offer a few certification courses on fundamental analysis and technical analysis for free, while there are also paid courses. 

Which One to Choose?

Last but not the least, a beginner in the stock market may now feel confused about which strategy to choose for becoming an expert trader, i.e., whether to learn technical analysis or fundamental analysis. Now it depends on your choice of investment pattern, as well as your level of risk tolerance. 

However, it is safe to say that combining technical analysis and fundamental analysis will increase an investor’s chance of making greater profits from the share market, as the blending will provide the best of both strategies.