Technical analysis (TA) is where you value your stocks based on past pricing and volume information. It assumes that the asset is a reflection of supply/demand and that supply/demand are driven by regular factors, such as economic and data analyses, as well as guesses. There is a difference between this and fundamental analyses, and the primary one is that financial statements are used to value equities with fundamental versions. Both can be helpful, but TA combines past information and the “feel” of the market to value your securities, whereas the other one takes a formal approach by reviewing statements of the companies, generating metrics or measurements and more.
Advantages
The primary advantage of Nifty technical analysis software is that it can be easier to understand and can be done quickly, especially if you use charting equipment. There are many charting programs available online, so you’ll be able to find something that suits your needs.
Another benefit is that you don’t have to have financial statements to value the data you receive. While that can be beneficial in itself, it can also be difficult to procure. Instead of using a fundamental value system, TA will use the feeling of the particular market, which is subjective to the times and economy.
Disadvantages
Because it uses the past to forecast the future, it may not be a perfect solution. However, the stock market isn’t about winning all the time or losing all the time. There is some risk involved whether you use these programs or not. The past doesn’t always explain how the future will work, and there could be unforeseen circumstances beyond your control.
Because of these disadvantages, you cannot use this option to make consistent decisions. You will need to input the parameters each time and run the analyses first before doing anything else. However, it can help you to see the past and what it brought, giving you a more hopeful feeling for the future.
If you choose the fundamentalist route, you’ll be relying on financial documents, but there can be some shortcomings to this process. For example, there are so many different accounting methods out there that it can be impossible to compare companies within different industries. Plus, financial documents don’t give you all the information that you’ll need to know to make an excellent decision.
If you prefer to work with patterns and information from the stock market, you’ll invariably want to consider this type of product.
Nifty technical analysis software has many advantages over other options. Visit Spider today to learn more or to request a free trial. Click here.
