Fundamental Analysis vs. Technical Analysis

Fundamental analysis is a legitimate form of analysis of the companies and therefore, of the projection of the price of the stocks; but it is based on countable antecedents with at least six months of delay and on the other hand, it will indefectibly be tied to the materialization of the plans of the company in the future. This makes this type of analysis be used by long term investors. value should not be taken away to the fact that the future happenings can affect this type of analysis is an unpredictable way given that nobody has a crystal ball at their disposal in any sense. There are even sometimes when entire branches fall in an entire sector, as a consequence of new technical discoveries. To anticipate them, one would have to be a futurist instead of a stock exchange specialist. Even though it is possible to know a specific branch very well, it is not possible to know where competition will spring up from in the entire sector, or of a particular company. But these evolutions or structural changes in the long term do not really have a lot to do with the authentic cyclic movements of the stock exchange. Most of the investors in the stock exchange market follow the fundamental analysis type which is based on the analysis of balances, profits, price/profit relation, asset value, and information or news about the topic of control of the company, merges, divisions, new technologies and products. But aside from this, it is also influenced by the data of a friend or broker, unprovable data, but that constitutes the big temptation of taking as something certain.