Fundamental analysis
This approach examines a business — its earnings, balance sheet, industry and management — to form a view of value.
Technical analysis
This approach studies price and volume behaviour to interpret patterns in how participants have acted.
Limitations of both
Both are frameworks for interpretation, not forecasting tools. Neither guarantees an outcome.
Key Takeaways
- Fundamental analysis studies the business; technical analysis studies price behaviour.
- Neither approach removes uncertainty.
- Understanding the method matters more than adopting a label.
- Fundamental Analysis
- Technical Analysis
- Market Concepts
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