COMPARATIVE ANALYSIS BETWEEN THE FUNDAMENTAL AND TECHNICAL ANALYSIS OF STOCKS

• Main Authors: Nada Petrusheva, Igor Jordanoski
• Format: Article
• Language: English
• Published: KD Mapro 2016-04-01
• Series: Journal of Process Management. New Technologies
• Subjects: fundamental analysis; technical analysis; investing; value investing; trading
• Online Access: http://www.japmnt.com/images/volume4/issue-2/4.%20COMPARATIVE%20ANALYSIS%20BETWEEN%20THE%20FUNDAMENTAL%20AND%20TECHNICAL%20ANALYSIS%20OF%20STOCKS.pdf

In the world of investing and trading, in order to have a definite advantage and constantly create profit, you need to have a strategic approach. Generally speaking, the two main schools of thought and strategies in financial markets are fundamental and technical analysis. Fundamental and technical analysis differ in several aspects, such as the way of functioning and execution, the time horizon used, the tools used and their objective. These differences lead to certain advantages and disadvantages of each of the analyses. Fundamental and technical analysis are also a subject of critical reviews by the academic and scientific community and many of these reviews concern the methods of their application, i.e. the possibility of combining the two analyses and using them complementarily to fully utilize their strengths and advantages.