The Need for Efficient Investment : Fundamental Analysis and Technical Analysis

Investment opportunities are plenty, but not all are profitable. This papers seeks to clarify the need to make a proper fundamental analysis when investing in various securities. Fundamental analysis does not require one to be a financial analyst so as to detect high risk assets or assets with a good return in the future. Traders typically approach financial markets in one of two ways: either through technical analysis or fundamental analysis. Technical analysis uses historical stock statistics, usually price and volume data, to forecast future prices, while fundamental analysis tries to predict a stock's intrinsic, or 'fundamental' value, and looks for opportunities where the live price deviates from the calculated intrinsic price. Efficient investment involves the use of both fundamental analysis and technical analysis