Equities

Equities - How do investors choose shares?

Level: Beginner / Length: 13 minutes

In this module we’ll explore the reasons why investors choose to buy or sell shares. In particular we’ll focus on the differences between fundamental and technical analysis and factors that may impact a decision for both.


Understand Market Capitalisation

See how charts help in selecting the stocks to buy.


The fundamental analyst searches for under-valuation, over-valuation and fair valuation by comparing market cap to book value.

The technical analyst will look for trends. A trend indicates the possible direction of a share price. They study historical charts to predict where a share is heading.

In this module we’ll take a look at:

  • The two main approaches used by professional traders
  • An overview of how fundamental analysis and technical analysis differ
  • And, we’ll look at a few examples of both

IMPORTANT INFORMATION

Please note that Saxo Academy is property of Saxo Bank A/S. The materials published on Saxo Academy should not be considered as financial, investment, tax, trading or other advice, or recommendation to invest or disinvest in a particular manner. SCML assumes no liability for any losses resulting from trading in accordance with a perceived recommendation or reliance on Saxo Academy materials. Following or replicating other traders involves risk. Past performance of a trader is not indicative of future results.