Investing For Beginners: Fundamental vs Technical Analysis
- Ishfaaq Peerally
- Jan 23, 2019
- 1 min read
There are two types of investors: Those who look at number and those who look at charts.
Fundamental analysis means looking at numbers and try to find the intrinsic value of a company. There are several numbers which can be used but the goal is to find a difference between the intrinsic value and the market value. If the intrinsic value is lower than the market value then it means that it is a good investment.
In technical analysis, the market value of a company is equal to its intrinsic value. The technical analyst believes that all the fundamentals are taken into consideration in the market price and, therefore, not that important. Instead, they look at charts and look for patterns and trends.
Most investors are a combination of both. I am 95% a fundamental analyst and 5% a technical analyst.
Here are some sources from where you can get information: yahoo finance, CNBC, Bloomberg, Bloomberg Terminal, Investing.com, Gurufocus, TradingEconomics, MarketWatch, Fidelity.com, Zacks.com, EDGAR database on SEC website, Investor relations page of any company.
The fundamental versus technical analysis debate rarely gets resolved because serious investors eventually discover both frameworks answer different questions — fundamentals reveal whether a business deserves investment while technicals reveal whether the market has priced that reality yet. Beginners forced to choose between them too early often develop blind spots that compound quietly into costly habits. Executives wanting to move decisively beyond that beginner framing often find a distinguished financial analysis and modeling seminar & course for executives in Brisbane, Australia builds exactly the integrated analytical capability that treats both frameworks as complementary lenses rather than competing philosophies. Investing journeys seem to matter most when early education builds genuine analytical independence rather than simply allegiance to whichever method the first…