Different types of stock market analysis

I have learnt that there are two different types of stock market analysis. These are:

1.       Fundamental analysis and

2.       Technical analysis

Fundamental analysis looks at the details of a specific company; these are things such as; who the directors are, what market the company operates in, what the chairmen statements are and other highly specific things about the company.
By analysing a company, it’s history, current status, reviewing it’s income and balance sheets, it is possible to derive some expectations of the future and therefore predict which direction the company’s share price may go.

Technical analysis, on the hand, is about looking at the company’s stock value only over a period of time on a chart. By comparing the stock price against it’s moving average and other calculated chart lines, it is possible to see trends and patterns in the stock which help to predict the future value. The theory behind technical analysis is that the price at any given moment in time, is the sum total of all the investors’ knowledge that have bought or sold the shares, which is likely to be more accurate than one persons predictions.
As all the investors are subject to human nature, especially desire for more and fear of loss, the charts show predictable patterns.

I know more about technical analysis at present as I have finished two books by Clif Droke, ‘Moving Averages’ and ‘Technical Analysis’. These are both very good books, and I would recommend anyone interested in stock market analysis reading both of them.

Next steps

I intend to read up more on fundamental analysis to complete the picture. Heather, my wife, also found a very good course on stock market analysis which covers both technical and fundamental analysis. There is a three hour free introduction seminar which I am going to go to. The course itself is £3K + VAT. It is also recommended that you need at least £2K to invest to make it worthwhile.

I need to complete more of my plan before I am ready to commit any money yet. I am looking to gain as much advice as possible and put together my master plan. However I am going to go to the free seminar and if it looks really good, I might sign up.

The course can be found at: http://www.knowledgetoaction.co.uk/

If anyone has been on this course, please let me know what you thought of it. Thanks