A very important question about Stock Technical and Fundamental Analysis.?
I am currently learning how to analyze stocks and see which are worth buying, selling or holding.
Lets say for a certain stock, I calculate
Technical Analysis
-Book Value
-Market-to-Book Value
-Dividend Yield
-P/E Ratio
-Dividend Market Value
-52 High/Low $/share
-Beta
-Price/Sales Ratio
-Fair Value $/share
-3-5 yr High/Low Projections
Fundamental Analysis
-ROE
-ROA
-Retention Rate
-Reinvestment Rate
-OPM %, NPM %
-Current Ratio
-Debt %, Equity %
-EPS 5 year History/Projection
-Dividend Payout
-Sales: Inventory Ratio
I have the knowledge and the resources to do this. But as far as judging the numbers, and being able to interpret them… I need some work. If I pump out all of these calculations… which are more important? Can some be considered rather insignificant?
I calculated all of these for a specific stock… yet I do not know whether or not to Buy, Sell, or Hold.
If anyone can help personally, or recommend any resources, it would be greatly appreciated.
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about 1 year ago
Actually, everything you listed in both categories are considered fundamental analysis. Technical analysis is charting.
Personally, I use both fundamental and technical analysis. I use the fundamental analysis to see if I think the stock will move up or down over the long term, and then I use technical analysis for timing my entry and exit from the trade.
I’m a firm believer in looking at all the data you can, so I wouldn’t exclude anything from my decision.
about 1 year ago
All these calculations are part of fundamental analysis.
Personally I think that fundamental analysis is good only if you like to hold stock for a long time, so you calculate its “quality” and if it is good you will buy it and hold it some time (6 months – year) while its price is increasing.
If you like to trade more frequently you will need technical analysis.
I would recommend you to visit: http://www.ta-guru.com. There you can find learning materials for technical and fundamental analysis and also compared technical vs fundamental analysis.
If you would like to learn more about technical analysis, I would recommend a book: “Technical Analysis of the Financial Market” by John J Murphy.