Hi dear Hivians, after having written an introduction on the importance of a mental approach to finance and the fundamental need to work on one's emotions, today I want to start a basic course, which starting from the definitions of analysis, we will then go on to look at in the following episodes specifically the tools in my opinion the most useful and important for reading graphs, doing things step by step, without overloading with information. I hope you find this free course and project useful and that you find it interesting.
Source CCO: https://pixabay.com/it/photos/pensione-bambino-scuola-figli-1666644/
Financial analysis is a detailed study of money and financial markets. It involves evaluating the financial health of companies, financial institutions, and markets in general. The main objective of financial analysis is to assess the value of a company or asset and make investment decisions based on these evaluations.
There are two main types of financial analysis: fundamental analysis and technical analysis. Fundamental analysis focuses on studying a company's financial data such as earnings, revenues, profits, debts, and other economic factors. Technical analysis focuses on analyzing price charts, looking for patterns and trends that may indicate possible future price movements.
Financial analysis can be used for various purposes, including investing in stocks, bonds, mutual funds, and other forms of investment. It can also be used to assess a company's ability to repay its debts and make financing decisions.
Financial analysis is the study of money and financial markets to assess the value of a company or asset and make investment decisions based on these evaluations. There are different types of financial analysis, including fundamental analysis and technical analysis, and it can be used for various financial purposes.
Technical analysis is based on the idea that the price of an asset reflects all available market information, including economic, social, and political factors that can influence the price. The goal of technical analysis is to identify patterns and trends in price charts that can be used to predict future price movements. Technical analysts use technical indicators such as moving averages, Bollinger Bands, and the Relative Strength Index (RSI) to aid in their analysis.
On the other hand, fundamental analysis focuses on studying a company's financial data, such as earnings, revenues, profits, debts, and other economic factors. The goal of fundamental analysis is to determine the intrinsic value of a company or asset, which is its value based on its fundamentals such as its income, expenses, and management. Fundamental analysts use metrics such as the Price-to-Earnings (P/E) ratio, the Price-to-Book (P/B) ratio, and the Dividend Yield to evaluate the attractiveness of a company or asset.
In general, technical analysis and fundamental analysis are two complementary approaches to financial analysis and can be used together to gain a more complete view of the value of a company or asset.
That's all for today, stay connected to follow the next episodes of the course, see you at the next lesson.