Technical Analysis for Long Term Investors in Stock Market

1. Blog2: equity99.com Technical Analysis for Long Term Investors in Stock Market We all know that technical analysis and chart reading techniques are the finest techniques and help investors to understand the fundamentals of a company. Technical analysis is good for both short and long term investors; however, it is highly beneficial for people who want to invest for long term and build fortune. Let us discuss why technical analysis is essential for investors. But before going deep into it, first it is important to know that there are two ways to analyze a stock; fundamental analysis and technical analysis. So, let us discuss them in detail – Technical Analysis– It is all about charts and price action, historical market data, option interest as well as psychology. It will help you to know the price trends, high and low, volume analysis, reasons for the overall performance of a stock. “To know when to buy and when to sell, it makes sense to use technical analysis.” Hence, we can say that it is highly relevant and essential for investors. Fundamental Analysis– It is about studying, analyzing and evaluation of the financials of a company and other details of a company. It is a broader concept and helps you to understand the balance sheet, profit and loss statement, etc. It also involves understanding of annual reports, industry analysis and much more. According to some analysts, it is useful for long-term

2. Blog2: equity99.com traders as well as uses expectations vs actual outcomes for analysis. All these things make the fundamental analysis worth considering. According to a wizard, technical analysis is the identification of trends, and examination of persistence, weakness and strength of that trend. As a beginner, you should focus on technical analysis to understand the basics of a stock and manage risk properly. Also, it makes sense to follow strict discipline and choose the best possible method. Did you know? Technical analysis can be used in all markets such as commodities, forex, stocks or bonds. Today, there are many ways to perform deep analysis of a stock. People use the most powerful, effective and safe techniques, such as candlesticks, chart patterns, etc. Some people use trend lines to know and understand support and resistance levels. There is no denying the fact that technical analysis can indicate long term trends of a stock. Investment advisory agencies have expert technical analysts and research analysts who produce technical analysis reports for investors so that they can invest wisely. They also help in financial planning and stock analysis. They explain the concept of money management & risk profiling and the importance of wealth management.