Advanced Share Trading

Guide: Advanced Trading

Fundamental versus Technical Analysis

There are many methods and theories about how to value a company and its share price.

But the debate boils down to two broad methods of stock picking:


Investors pick shares based on a company's prospects. In other words the most important thing is to assess if a company has the chance to make good and strong profits over the long term.

Technical Analysis

This revolves around observing patterns of share price behaviour to determine a trend and predict the direction of future movements.

In the following chapters we will look at these two schools of thought in more detail.

Top of Page