In the investing world, investors are usually classified into 2 main groups: Technical & Fundamental. I've used these terms previously but have not explained what it meant yet.
So, read on to find out the explanation!
Technical Investors
What you will see on the monitors of these people's electronic devices would be charts and financial report. Technical investors uses many complicated charting tools to find out if it is the right time to buy/sell. I will elaborate on the tools commonly used.
Fundamental Investors
What you see on the monitors of these people's electronic devices are news articles. Fundamental investors decide when to invest based on news reports on that company. For e.g, if capitaland manage to sell 100% of a particular property or should Keppel Corp be able to secure additional contracts, fundamental investors would be quick to snap up these stocks.
Which would I recommend?
Personally I feel that one should take into account both analysis to analyse a company. Now why do I say so? One can never rely on just a single analysis to analyse a stock as there are many factors affecting the stock price and thus all factors must be taken into account. Trends may show that the share would rise but if announcements regarding the share's poor performance are made, there is a higher probability the stock would decline instead.
Invest wisely!
Signing off~
Billy
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