The two big branches of stock market analysis

Fundamental analysis and technical analysis. These two approaches to the understanding of finance are generally considered incompatible because they are based on different data and tools. In fact, they are chosen according to the preferences and the style of each one. Nothing prevents anyone from associating them to create an effective complementarity.

Definition of fundamental analysis

Fundamental analysis places the target company or sector at the heart of a stream of complex economic information in order to determine its value and prospects. The challenge is to obtain an absolute value of a security, its intrinsic value. The number of criteria selected depends on the depth of the analysis performed. Thus, beyond accounting balances, it is the prospects of trade, expansion, innovation and competition that will be taken into account. Similarly, elements of the country's economic or social policy, plans for redundancies, internal scandals will also affect this value positively or negatively. Training is of course also provided to acquire the necessary skills in fundamental analysis. The ActivBroker broker does not provide direct information however and is advisable you to check with websites or forums if you are interested in this area.

Technical analysis and formation on ActivBroker

Technical analysis takes into account pure market data. All the information will come from observations and statistical calculations on the evolution of the prices, their cycles and their volumes. We use data from the past to project ourselves into the future. In fact, the overall principle is to create, through mathematical models, a curve or zones that will give an image of the movement of the courses or a zone of evolution. This graphic data allows the trader to identify trends, perceive discrepancies, anticipate changes in future trends. The broker ActivBroker has selected 35 of the most recognized technical analysis indicators in the market introducing and teaching them in progressive stages via trading trainings suitable to a beginner or inexperienced audience.