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