Fundamentals and technologies are the core basis for investing in stocks. Their investment concepts are different, which reflect investors' beliefs about investment behavior and can guide investors to make specific investment decisions.
According to the behavior characteristics of investors and different analysis methods, investment ideas can be divided into four types. Fundamental investment philosophy, technical investment philosophy, news investment philosophy and comprehensive aspects.
Fundamental analysis, also known as basic analysis, is based on the intrinsic value of securities, focusing on the analysis of various factors that affect the price and trend of securities, so as to determine what securities investors buy and when to buy them. The characteristics of value investors are that they care about the internal value of the company and advocate long-term investment. Usually, in long-term investment, professional institutions estimate the internal value of the stock by analyzing the fundamentals of the stock, compare the stock market value and the internal value, and find potential stocks with undervalued values. Fundamentals investors study from the macro, industry, and company levels, and analyze macroeconomic data, industry prospects, and company financial statements. Fundamentals investors mostly seek for undervalued individual stocks, or corporate restructuring to improve the fundamentals of individual stocks.
Most technical investors don't care about the fundamentals of the company. They pay more attention to the stock price trend, trading volume, capital volume, etc. Trend investment and short-term operation are usually carried out. Technical investors believe that market behavior covers all information, prices move along the trend, and history will repeat itself. Common technical analysis includes trend analysis, indicator analysis, fund analysis, etc. There are many technical analysis methods, each of which has certain applicability. Ordinary investors should pay attention to combining multiple indicators and multiple methods to comprehensively judge the timing of buying and selling. Different analysis methods will form different operation modes. Such as band trend method, shape breakthrough method, etc. Different investment concepts determine different aspects, so there is no difference between them.
