Fundamental vs technical
- 1. Investment InsightsInvestment Insights Fundamental vs. Technical Analysis StockStream LLP
- 2. All about investments. © StockStream LLP Disclaimer • Trading carries significant risk of losses and may not be suitable for all investors. Traders should assess these risks either themselves or in consultation with a financial advisor before investing. • There is no guarantee that the trading techniques, methods and other information in this presentation will result in profits. The content in this presentation in only intended for educational and informational purposes and not intended as trading recommendation. • The content of this presentation is subject to change without notice. • Stockstream Financial Advisory Services LLP or mystockstream.com will not take any liability or accountability of losses arising from the use of information in this presentation in any manner.
- 3. - 3 - All about investments. © StockStream LLP StockStream Education Model
- 4. - 4 - All about investments. © StockStream LLP Market Dynamics • Supply and demand dictate prices. • Factors determining supply and demand can be analyzed using either fundamental or technical analysis. • Fundamental Analysis looks at economic, social and political factors to determine the strength of the economy. • Technical Analysis looks at chart patterns to determine price movements
- 5. - 5 - All about investments. © StockStream LLP Fundamental Analysis • Interest rate expectations and GDP are primary factors driving currency prices. • Important fundamental data tracked are o GDP growth rates o Trade Balance o Inflation Expectations (PPI, CPI) o Interest Rates Expectations o Employment • Fundamental Analysis Techniques o Purchasing Power parity o Theory of Elasticity o Portfolio Balance Approach o Balance of Payments
- 6. - 6 - All about investments. © StockStream LLP Fundamental Analysis • Advantages: o Fundamental factors can provide leading indicators for trend change. o Good for long term trading. • Disadvantages: o Fundamental factors may take a long time to play out. o Difficult to establish accurate entry and exit strategies. o A lot of different evaluation techniques on different beliefs. o Not ideal for short or medium term trading esp. in high leverage markets
- 7. - 7 - All about investments. © StockStream LLP Technical Analysis • Based on the assumption that all current market information is reflected in the prices. • Charts are used to identify trends and patterns to help place trades. • Technical Analysis Techniques o Support and Resistances o Moving Averages o Fibonacci Analysis o Oscillators o Bollinger Bands o Elliott wave analysis, etc.
- 8. - 8 - All about investments. © StockStream LLP Technical Analysis • Advantages o Ability to set strict stop and limits on the trades allowing for risk management. o Ideal for short, medium and long term trade setups. • Disadvantages o Difficult to come up with a technical trading strategy with a high success rate. Different strategies work in different market situations
- 9. - 9 - All about investments. © StockStream LLP Questions • Visit and register at mystockstream.com • Follow and interact with StockStream Experts for answers • StockStream Education • StockStream Forex • StockStream Commodity • StockStream India
- 10. - 9 - All about investments. © StockStream LLP Questions • Visit and register at mystockstream.com • Follow and interact with StockStream Experts for answers • StockStream Education • StockStream Forex • StockStream Commodity • StockStream India