Equities Analysis: A Comparison of Technical and Fundamental Approaches, Study notes of Quality Management

Download Equities Analysis: A Comparison of Technical and Fundamental Approaches and more Study notes Quality Management in PDF only on Docsity! EQUITIES TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS VISION GOAL DATA GATHERED FROM TIME HORIZON COMPARING STOCK ANALYSIS DISCLAIMER In a fundamental analysis, it is critical to analyse a company's financial results, management performance and any future economic data. This is to find out if there’s an investment opportunity for you. The goal is to determine whether the intrinsic value is equal to the present value. Investors should analyse top-down and bottom-up on both quantitative and qualitative factors. Data is gathered mostly from the company’s financial statements, news reporting, economic events/reports, and industry statistical analysis. Predominantly for a long term investment time approach, that can often analyse data over a number of years. Key measure used by analysts in selecting a stock is its fundamentals, comprising of financial strength, industry leadership, and good quality management. Look for companies that have good governance, high profitability, increasing revenues from core businesses, ability to pay off debts, and have a significant level of free cash flow. In a technical analysis, it is important to understand the historical price charts and market statistics data of the company. If a previous market pattern exists, then it’s easier to make a decision. This aims to evaluate historical data trends (time of entry and exit) and momentum in price changes. Uses basic statistical method to find patterns and predict future movements based on past market data. Technically, the data is from reading the charts and graphs analysis as well as the market volumes from the company's activities. Short term trading approach that can be used in a timeframe of weeks, days or even minutes. Important metrics in technical analysis are price trends and volume of shares traded. Any trend that is coupled with a relatively higher volume indicates a stronger trend. Look for an increasing real trend reversal in price backed by higher volume. The information provided in this infographic is for general information purposes only. Such information does not constitute legal, financial, trading or investment advice. You are advised to seek independent advice and/or to consult relevant laws, regulations and rules prior to relying on or taking any action based on the information in this infographic. Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies do not accept any liability howsoever arising, including any liability arising from any decisions made on the basis of this information. I want to buy a stock for my long term investment. What should I do? Hmm… I’m thinking of buying a stock for short term trading. Is the financial result good? Do you find any market patterns? Is it underpriced or overpriced? Will this pattern repeat in the future? Past and future data required Relevant data sources to support Long term investment approach Short term trading approach Many have experienced success by combining these two methods. So, let’s start investing You can use both methods to research and forecast the future trends on the selected stock. Let’s start trading