The document discusses investment insights focusing on fundamental and technical analysis, highlighting their respective advantages and disadvantages. Fundamental analysis considers economic factors like GDP and interest rates, while technical analysis relies on chart patterns for trading decisions. It emphasizes the importance of assessing risks and consulting financial advisors before investing, and it encourages engagement with Stockstream experts for further education.

1. Investment InsightsInvestment Insights
Fundamental vs. Technical Analysis
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2. All about investments. © StockStream LLP
Disclaimer
• Trading carries significant risk of losses and may not be suitable for all
investors. Traders should assess these risks either themselves or in
consultation with a financial advisor before investing.
• There is no guarantee that the trading techniques, methods and other
information in this presentation will result in profits. The content in this
presentation in only intended for educational and informational
purposes and not intended as trading recommendation.
• The content of this presentation is subject to change without notice.
• Stockstream Financial Advisory Services LLP or mystockstream.com
will not take any liability or accountability of losses arising from the use
of information in this presentation in any manner.

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Market Dynamics
• Supply and demand dictate prices.
• Factors determining supply and demand can be analyzed
using either fundamental or technical analysis.
• Fundamental Analysis looks at economic, social and
political factors to determine the strength of the economy.
• Technical Analysis looks at chart patterns to determine price
movements

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Fundamental Analysis
• Interest rate expectations and GDP are primary factors
driving currency prices.
• Important fundamental data tracked are
o GDP growth rates
o Trade Balance
o Inflation Expectations (PPI, CPI)
o Interest Rates Expectations
o Employment
• Fundamental Analysis Techniques
o Purchasing Power parity
o Theory of Elasticity
o Portfolio Balance Approach
o Balance of Payments

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Fundamental Analysis
• Advantages:
o Fundamental factors can provide leading indicators for
trend change.
o Good for long term trading.
• Disadvantages:
o Fundamental factors may take a long time to play out.
o Difficult to establish accurate entry and exit strategies.
o A lot of different evaluation techniques on different
beliefs.
o Not ideal for short or medium term trading esp. in high
leverage markets

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Technical Analysis
• Based on the assumption that all current market information is
reflected in the prices.
• Charts are used to identify trends and patterns to help place
trades.
• Technical Analysis Techniques
o Support and Resistances
o Moving Averages
o Fibonacci Analysis
o Oscillators
o Bollinger Bands
o Elliott wave analysis, etc.

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Technical Analysis
• Advantages
o Ability to set strict stop and limits on the trades allowing
for risk management.
o Ideal for short, medium and long term trade setups.
• Disadvantages
o Difficult to come up with a technical trading strategy with
a high success rate. Different strategies work in different
market situations

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Questions
• Visit and register at mystockstream.com
• Follow and interact with StockStream Experts for answers
• StockStream Education
• StockStream Forex
• StockStream Commodity
• StockStream India

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All about investments. © StockStream LLP
Questions
• Visit and register at mystockstream.com
• Follow and interact with StockStream Experts for answers
• StockStream Education
• StockStream Forex
• StockStream Commodity
• StockStream India