Techniques Used In Analyzing Stocks

Fundamental Analysis of Stocks
In this type of analysis, investors analyze stocks by investigating the financial statement of companies releasing stocks.

Technical Analysis of Stocks In the Stock Market
In this type of analysis, investors study price action on the stock market by the use of quantitative techniques and charts. The purpose of this type of analysis is to forecast overall price trends. A company's financial statements are less important in this type of analysis.
Index Method
In this type of analysis, investors value their portfolios by trying to create diverse investment strategies. The investment portfolio is weighted by market capitalization. In this type of analysis, investors try to find ways to minimize taxes, maximize the general trend of the stock market, and makes diverse investments. Analysis aims to find the most diverse portfolio strategy possible.