There are two primary types of analysis used in the stock market: fundamental analysis and technical analysis.


Fundamental Analysis: Fundamental analysis involves evaluating the financial health and performance of a company to determine its intrinsic value and potential for growth. This type of analysis looks at factors such as a company's revenue, earnings, cash flow, debt levels, and management team, as well as industry trends and macroeconomic factors. The goal of fundamental analysis is to determine whether a company's stock is overvalued or undervalued, and whether it's a good long-term investment.


Technical Analysis: Technical analysis involves studying past market data, such as price and volume, to identify patterns and trends that can help predict future price movements. This type of analysis uses charts, indicators, and other tools to analyze price movements and identify potential buy and sell signals. The goal of technical analysis is to identify short-term trading opportunities and to time entry and exit points for trades.


Both fundamental and technical analysis have their strengths and weaknesses, and many traders use a combination of the two to make investment decisions. Fundamental analysis can provide a long-term perspective on a company's value, while technical analysis can help identify short-term trends and patterns. Ultimately, the choice of which type of analysis to use will depend on a trader's goals, preferences, and risk tolerance.