Types Of Stock Market Analysis

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The main objective is to examine the unsteadiness of stocks and the changes that occurred over the past five years and, for a better understanding of fluctuations in the stock market as a whole and the kind of events that have an impact on the value of the market.


A stock market contains diverse economical transactions. And it evaluates each trading instrument. The stock market is analyzed in many ways; this project is in applying self-made code within the program MatLab to analyze stock market data. Financial speculation whether in the form of direct stocks or otherwise has been around for a very long time, some the first financial investment occurred throughout Europe in the 14th century when wealthy Venetian merchants invested in businesses they wanted to support. The stock we are analyzing came from The New York Stock Exchange, and it was formed in 1792. The source found regarding methods for stock market analysis discussed one of the more common ways that stocks are analyzed this method takes into consideration existing earnings streams as well the potential for growth within a company, this can be further refined by taking into account the quality of said growth.

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Types of Stock Market Analysis

Investors use various types of market analysis to select and to invest in a stock. Proponents of different market analysis techniques swear that their method is the most effective; the best working methodology is the only key to success in the market. All in all, the stock market analysis has three types. They are:

  1. Fundamental Analysis,
  2. Technical Analysis, and
  3. Sentimental Analysis.

1) The method of measuring a stock’s or any type of security’s intrinsic value is called Fundamental Analysis. This is done by studying all the things that can show major impact on this value such as the company’s important things like finance and management condition. The key objective of doing this kind of analysis is to produce a particular value which can be compared to the current price so that an investor can figure out whether he or she is going to buy or sell the stock. If the value of the stock is lower than the present price, the stock is said to be overpriced and an investor can decide to sell. On the other hand, if the value is more than that of the current price, the stock is labeled as undervalued which is a basis for profitable buying.

2) Interpretation of the price action of a company’s underlying stock (or any tradable financial instrument) is called the Technical analysis. It uses various charts and statistical indicators to determine price support/resistance, range and trends. It identifies the past relevant price patterns and behaviors to help forecast the potential direction of the stock. The price of the stock is only the focused thing in this methodology. By using the past data on price, technical analysis attempts to interpret the supply and demand that moves share prices. It visually tracks the activity of well-known companies using different charts and indicators to specify price areas of strong interest in the area of exchange. History tends to repeat all by itself as an evidenced by price patterns.

3) Sentimental Analysis is one of the most popular techniques which is widely been used in every industry. Extraction of sentiments from user’s comments is used in detecting the user view for a particular company. Sentimental Analysis can help in predicting the mood of people which affects the stock prices and thus can help in the prediction of actual prices. Conclusion Of all types of analysis mentioned, which approach is the best? There is no clear answer to that question. But it’s important to remember three things: your performance in the past does not guarantee you the future results, the results you see now do not remain constant, and the best approach may be to create a portfolio based on you and your time horizon, risk tolerance, and goals. Keep in mind that the return and principal value of stock prices will not be the same as the marketing conditions change.

Works Cited

  1. http://www.bushwealthmanagement.com/resource-center/investment/types-of-stock-market-analysis
  2. ‘National Register of Historic Places Inventory – Nomination Form, 11 Wall Street’. National Park Service. Retrieved September 26, 2018.
  3. Strebel, Paul J. “The Stock Market and Competitive Analysis.” Strategic Management Journal, vol. 4, no. 3, 1983, pp. 279–291. JSTOR, JSTOR, www.jstor.org/stable/2486087.


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