<a href="https://www.instaforex.com/ru/">ИнстаФорекс портал</a>
  • We offer investors

    investment

    We offer investors
    Rating of profitable PAMM accounts and a special step-by-step method for investing...

    Learn more

  • We offer traders

    trading

    We offer traders
    Raising funds to a trading account, returning commissions and spreads...

    Learn more

  • We offer for partners

    partnership

    We offer for partners
    Free earnings algorithm and guaranteed passive income, rating of partner programs...

    Learn more

Methods of analysis of a company for investing

Two approaches to analyzing a company's business for investing

  1. Deep.
  2. Statistical.

Let's consider these two approaches in more detail.

A deep approach to company analysis.

You study the business of the company very deeply and try to find out complete information about how the company conducts its business. You study the company for weeks, and sometimes months. You carefully study the news background, read through all the reports of the company and conduct the most in-depth analysis. This analysis approach is used by many investors. But at the same time, you will not be able to analyze a large number of companies alone due to time constraints. This is a disadvantage of this method. And the advantage of this method is that about the company that has been analyzed - you will know everything, every little thing! And you can most likely predict profitable trades.

A statistical approach to company analysis.

With this approach, you also analyze the financial statements of the company, but do it according to a pre-compiled list of criteria. Based on statistics, you already know the most important indicators, based on which you can make a financial picture of a company. Thus, much less time is spent on business analysis.

Using this approach, you rely on a statistical advantage, and average the profitability of your transactions. Compared with a deep approach to analyzing a company’s business, this approach will bring lower average profit per transaction. But such an approach will allow us to analyze a larger number of companies and, as a result, a larger number of investment ideas.

Both of these approaches are used by professional investment managers in their work. Each of the approaches is capable of generating profit. Here the question is exclusively of the choice of investor, depending on personal preferences and possession of a margin of time.

Thus, all of the above can be reduced to a convenient table for perception:

Approaches to the analysis of companies for investment.

  Deep Statistical
Advantages You know every little thing about the companies that have analyzed and can predict profitable deals on them with the highest probability. You spend no more than two hours analyzing one company. You can analyze more companies and find more investment ideas.
Disadvantages Digging for weeks and months in one company, you can analyze only a narrowly limited number of companies. With such an analysis, perhaps you will miss certain little things in the analysis that can ultimately decide the outcome of the transaction. You just use statistics and a certain number of transactions will be negative for you.
Found a typo? Please select it and press «Ctrl + Enter»

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest. Sign up or login to your account.
Rate this post:
Attachments (0 / 3)
Share Your Location

Investor Blogs

Investment
​It is important for beginners in the field of investment to know that practice in this area is much more important than theory. Although it is necessary to know the basics, it is better to get down to business as quickly as possible in order to get ...
Investment
Investing always starts small. Just as a long road begins with the first step, so investing begins with the first contribution of a small amount.The main and most common mistake of any novice investor is the accumulation of a decent amount, and only ...

Trader Blogs

Trading
​According to statistics, the cumulative effect of technical knowledge, techniques and analysis does not exceed forty percent. A much greater role is played by the emotional state during transactions, as well as the individual reaction to market move...
Trading
​Forex price changes according to a complex law.The price of the Forex market at first glance moves erratically. But with careful consideration of the schedule, some patterns can be revealed. Does a trader need to know these patterns in order to make...

Partner Blogs

Partner
​Twitter Lead Generation – starting Now! Do You Know How to Start Twitter Lead Generation?​ ​How do you generate leads with Twitter starting today? Twitter is definitely an amazing social networking platform for engaging users, building relation...

Investors Forum

How do you feel about investing greed?
Is there a line between greed and thrift in investing? Now, if I invested in som...
296 Hits
0 Votes
0 Replies
Posted on Thursday, 09 April 2020
  • #Investment
What is IODEX?
What is IODEX? Platts Iron Ore Index, or IODEX (IODBZ00), is a benchmark assess...
780 Hits
0 Votes
0 Replies
Posted on Friday, 20 September 2019

Traders Forum

No Entries available yet

Partners Forum

Images for Websites
A website needs a lot of original pictures. Well, if you can create them. And if...
855 Hits
0 Votes
2 Replies
Posted on Saturday, 21 September 2019
SEO Tools
Post links to SEO tools here. Website Ranking and Rating regarding Traffic, A...
927 Hits
0 Votes
0 Replies
Posted on Sunday, 22 September 2019

Community news

Pinned Items
Recent Activities
  • Наверное из-за санкций. Раньше все было в порядке.
    10% Надежность
    90% Скорость
    90% Поддержка
    90% ПАММ площадка
    90% Партнерка
    Отзыв Я дико извиняюсь, но по внутреннему решению компания работает не со всеми субъектами Российской Федерации. Считаю это большим минусом.
    Деятельность Партнер
    0
    0
    0
    0
    0
    0
    Post is under moderation
    Stream item published successfully. Item will now be visible on your stream.
  • 10% Надежность
    90% Скорость
    90% Поддержка
    90% ПАММ площадка
    90% Партнерка
    Отзыв Я дико извиняюсь, но по внутреннему решению компания работает не со всеми субъектами Российской Федерации. Считаю это большим минусом.
    Деятельность Партнер
    0
    0
    0
    0
    0
    0
    Post is under moderation
    Stream item published successfully. Item will now be visible on your stream.
There are no activities here yet