How to Make Stock Analysis

Although there are hundreds of shares listed in the Stock Market, not all of them have good prospects in the future. Aside from the fact that the company's performance is not necessarily good, the projected increase in share prices does not always offer a reference to our desires as investors. 

Therefore, every stock investor must know the following three methods of stock analysis.

1. Fundamental Analysis

Stock fundamental analysis is an effort to project the outlook for a stock based on macroeconomic conditions, related industry sectors, as well as the financial statements and organizational structure of the issuer of the stock issuer. Macroeconomic conditions and the industrial sector can be obtained from mass media coverage, while financial reports can be accessed on the IDX website or the issuer's website.

In stock analysis from a fundamental perspective, investors must be diligent in listening to the latest economic news and financial statements of the issuer before investing in a particular stock. To note here, fundamental analysis looks at actual data, not rumors.

2. Technical Analysis

Stock technical analysis is an attempt to project the outlook for a stock based on statistical and mathematical measurements of the history of related stock prices in the past. Usually, investors will open price charts, then apply technical indicators such as Moving Average, MACD, and others as analytical tools. After that, then it can be decided whether to buy, hold, or release a stock.

3. Market Maker Analysis

Market maker analysis is based on the assumption that there is a group of people or institutions (called "market maker") who have large funds and are able to manipulate price movements in the stock market. The shares that are manipulated by market maker generally come from low-cost stocks (third-line shares) or penny stocks.

The market maker's actions cannot be predicted using the first two methods of stock analysis above, because issuers whose shares are played do not necessarily have good financial reports and technical indicators may experience anomalies. However, their actions can offer a good reward for stock traders who can detect it well, as well as causing losses for investors who are unknowingly caught in the scheme. Therefore, a separate observation technique was born which is often referred to as Market Maker Analysis.