Types Of Stock Analysis

Stock Analysis can be categorized under three titles. let us have a brief outlook on these types of Stock Analysis.

1 Fundamental Analysis of Stock

As you know the stock are issued by the companies before purchasing the traders should assess the financial statement of the company as it would help him to reckon whether the stock could give him a profit or not.This type of analysis is a must that every one should follow it as beginners too need to follow this step if you skip it off you never make a way for getting profit. Remember well that stock you purchase should have good buying demand which promote the way for earning more profit.

2  Technical Analysis of Stock in the Market

In this type of analysis the traders go one step ahead. Various technique and charts are used so that he can figure out the perfect frame that would be of help in analyzing the stock. The Advance-Decline Line are one of the technique used which are utmost in your need determining the price of stock dropping and raising. By subtracting the dropping and rising price he can conclude the net advance. In ihe mean time calculate the Dow Jones Index you could see Advance-Decline Line and Dow Jones Index are almost parallel and the difference between this is the sign of change in a market.

3 Index Method

 in this method trader assess the portfolio using diverse investment strategies. Depending on market capitalization the they choose the stock. By this the general trend of stock market are maximized, taxes are to minimized to certain degree and diverse investment are made.