When investing in stocks, we often hear about fundamentals, technicals, and chips. So what are these three sides? In fact, they are investment analysis tools: fundamentals are to study the value of companies, technicals are to predict future stock price trends in the past, and chips are to observe the movements of big players.
Fundamentals are the banner design study of the value of a company Fundamentals are a valuation method that selects stocks after investigating and researching the overall environment, industry, and company. If A Bao wanted to invest in stocks, what would he do first to choose the ideal company? 1. Overall economic analysis (international and domestic economic indicators, such as GDP growth rate, exchange rate, inflation): When A Bao recently read the news, he heard that Taiwan's GDP growth rate has been positive for several consecutive years, and Taiwan's prosperity is stable; The domestic situation is also relatively familiar.
Therefore, I began to want to invest in domestic enterprises. 2. Industry analysis (sales volume, price, competition, and number of companies in the overall industry): Later, he thought that every time he went out, he would encounter either a beverage store or a convenience store. He felt that the food industry was developing well in Taiwan; Coupled with the fact that food is a necessities for people's livelihood, the sales volume is stable. He decided to further study the leader in the industry, Unity (1216). 3. Company analysis (financial statements and non-financial information, such as sales, new products, profits): So Ah Bao went to see the unified financial statements. It is found that the company's financial performance is stable, and it has also developed well in the mainland in recent years, and its profits have continued to rise. In the end, Abao put this stock on its watch list. This is the 3 steps of fundamental analysis.