Trade-off between Fundamental and Technical Analysis

Emon Kalyan Chowdhury

MPRA Paper from University Library of Munich, Germany

Abstract: Fundamental analysis and technical analysis are two different approaches to evaluating stocks. Fundamental analysis is a long-term investment strategy that seeks to identify undervalued stocks by examining a company's financial statements, management, industry, and economic environment. Technical analysis is a short-term investment strategy that seeks to identify trends and make trading decisions based on those trends. Both fundamental and technical analysis have their own advantages and disadvantages. Fundamental analysis is more time-consuming and requires a deep understanding of financial statements, but it can be more reliable in the long run. Technical analysis is faster and easier to learn, but it is more prone to false signals. The best approach for an investor depends on their individual goals and risk tolerance. Investors who are looking for long-term growth may prefer fundamental analysis, while investors who are looking for short-term profits may prefer technical analysis. In some cases, it may be beneficial to use both fundamental and technical analysis together.

Keywords: Fundamental analysis; technical analysis; intrinsic value; market trends; investments (search for similar items in EconPapers)
JEL-codes: A1 A2 D7 M2 P1 (search for similar items in EconPapers)
Date: 2021-07-15
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Portfolio 25.2(2021): pp. 15-22

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/117991/1/Portfolio ... nical%20Analysis.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/118206/1/2023_Port ... nical%20Analysis.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:117991

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().