Without a doubt, stock analysis is one of the main strategies used by investors to identify the best opportunities in the market.
Additionally, investing in stocks is a way to build wealth and increase your capital over time.
However, investing in stocks may seem complicated for those who are just starting out, but the truth is that with the right knowledge and some tools it is possible to make more assertive decisions.
So in this article, we will explain what this analysis is, the main methods and how to use applications to facilitate the process.
In short, stock analysis is the process of evaluating a company's performance and growth potential with the goal of deciding whether its shares are worth buying, selling, or holding.
Additionally, this analysis helps you understand whether the stock price is fair and what the future prospects are.
There are two main approaches to this analysis:
Each of these strategies has its advantages and limitations.
Many investors combine the two to make safer decisions.
To apply stock analysis effectively, it is important to follow a few steps.
So here's a practical step-by-step guide to get you started:
First of all, it is important to know what your investment objective is.
Do you want to make money in the short term or do you prefer to invest for the long term?
This certainly influences the choice of approach (fundamentalist or technical).
Know the sector in which the company operates.
For example, technology companies have different dynamics than those in the energy sector.
Understanding the context helps predict opportunities and risks.
In the case of fundamental analysis, pay attention to indicators such as P/E (price to earnings), ROE (return on equity) and profit margin.
They reveal whether the company is profitable and efficient.
For those who invest in technical analysis, charts are essential.
Look for bullish and bearish patterns, support and resistance, and use indicators like moving averages and the RSI (relative strength index).
External events, such as economic crises, regulatory changes or relevant facts can impact the share price.
Follow the news to anticipate possible changes in the market.
To understand how a stock might behave, it is necessary to observe indicators such as:
Value stocks are those that tend to be traded at a lower price than they are actually worth.
On the other hand, Growth actions are issued by companies with expansion potential above the market average.
O balance sheet provides a snapshot of a company's financial situation at a given point in time, including its assets, liabilities and equity.
Trading volume indicates the amount of shares being traded.
One high volume may signal high interest from investors, while low volume may indicate the opposite.
You don't have to do everything manually.
There are apps that offer ready-made data, graphs and analyses, making the investor's life easier.
Nowadays, you don't need to be an expert to perform stock analysis.
Certainly, with the help of applications, it is possible to have access to charting tools, financial reports and even prior analyses carried out by experts.
Check out some recommended options:
In conclusion, stock analysis is an essential skill for anyone who wants to invest intelligently.
Using a combination of fundamental and technical analysis increases the chances of making better decisions.
Additionally, with the help of specialized applications such as Status Invest, the process becomes simpler and more efficient.
So use financial indicators, understand the balance sheet and monitor trading volume to get a complete assessment of your potential stock market investments.