How to correctly understand and use basic analysis and technical analysis methods

Technical analysis of the theoretical basis: market behavior inclusive digestion of everything; prices run in a trend way; history will repeat itself, but will not simply repeat. The analysis corresponding to technical analysis is called fundamental analysis. Fundamental analysis is also known as fundamental analysis: Fundamental analysis analyzes the macroeconomic situation, industry conditions, and company operating conditions that determine the intrinsic value of a stock and affect the price of the stock, evaluates the investment value and reasonable value of the stock, compares it with the market price of the stock, and accordingly forms a recommendation for buying and selling.

Basic analysis includes three aspects:

1. Macroeconomic analysis. Study of economic policy (monetary policy, fiscal policy, tax policy, industrial policy, etc.), economic indicators (gross domestic product, unemployment rate, inflation rate, interest rates, exchange rates, etc.) on the stock market;

2. Industry analysis. Analyze the impact of industrial prospects and regional economic development on listed companies;

3. Company analysis. Specifically analyze the industry position, market prospect, and financial status of listed companies.

Technical analysis advantages and disadvantages: technical analysis has a comprehensive, direct, accurate, operable, wide range of application and other significant features. Compared with the basic analysis, technical analysis for trading fast results, get the benefits of a short cycle. In addition, technical analysis of the market response is more direct, the results of the analysis is closer to the actual market local phenomena. The entry and exit positions obtained through market analysis are often more accurate than those obtained through fundamental analysis.

The disadvantage of technical analysis is that the scope of consideration of the object is relatively narrow, and it is difficult to make effective judgment on the long-term market trend. Technical analysis is more suitable for short-term market forecasting than basic analysis, and to conduct a longer period of analysis, you must refer to the basic analysis, which is the application of technical analysis should pay attention to the most important issues.

Basic analysis advantages and disadvantages: basic analysis of the starting point of the analysis lies in the collection of information, hearsay market rumors have a great deal of deceptive and risky, listed companies in the field of research costly manpower, financial resources, for the average investor, the stock investment analysis, especially the basic analysis, relying on the media published domestic and foreign news and public disclosure of information on the listed companies. Fundamental analysis can grasp the basic trend of stock prices in a more comprehensive manner, but is not sensitive to short-term market movements. Fundamental analysis is mainly suitable for market forecasts with a relatively long period of time, as well as in areas where forecasting accuracy is not required.

These can be slowly to understand, speculation is the most important thing is to grasp a good certain experience and skills, so as to maintain a profit in the stock market, the novice in the case of grasp is not allowed to use a cattle stock treasure cell phone speculation to follow the cattle inside the operation, so much more reliable, I hope to be able to help you, I wish to invest in a happy!