Analysis Method is divided by 2, they are:
- Fundamental Analysis
- Technical Analysis
Fundamental Analysis consider that analysis strategic, management, product, financial statistic, and all about financial information influence the decision of buying securities in Stock Exchange.
Many factors that used by fundamentalist, they are:
1. Supply Demand
Supply and Demand for a commodity have significant influence of fluctuation. If a demand of a commodity is increasing, it’s followed by increasing the value of commodity.
2. Export and Import
Export and Import also the factors that analyze fundamentalist. If a demand of export is increasing, it’s followed by increasing the value of commodity.
3. Weather and Geographical conditions
The factors of weather and geographical conditions also influence rate of commodity. Natural disaster caused by drastic change in the weather can defeat a commodity product, so, causing deficit of that commodity and the rate will increase.
4. Politic and Economy
5. International Stock Exchange
6. Substitution Commodity
Technical analyze is an analyze method that used to trial fluctuate in the past for forecast of fluctuation in the future. Technical analyze is used to forecasting the security value, they are: Stock, Forex, option, or another instrument that can use for trading.
Analyze method is most used by the trader. Whenever and wherever you are trading, you need this method so you are not “lost” in your trading activity. Technical Analyze is like a guide for you to “read” the market condition.