Risk Management through Fundamental and Tech...

Risk Management through Fundamental and Technical Analysis

Author Name : Dr. Sangita

DOI: https://doi.org/10.56025/IJARESM.2024.1212243798

ABSTRACT Risk management is a critical aspect of stock market investing, ensuring that investors protect their capital while maximizing returns. This study explores the integration of fundamental and technical analysis as effective tools for mitigating risks in equity markets. Fundamental analysis evaluates a company's intrinsic value through financial statements, economic indicators, and key ratios, helping investors avoid overpriced or financially unstable stocks. On the other hand, technical analysis focuses on historical price movements, trends, and market signals to optimize entry and exit points, reducing the impact of volatility and market timing risks. By combining these approaches, investors can make informed decisions, minimizing potential losses while enhancing portfolio performance. Through case studies and practical examples, this research highlights how blending fundamental and technical analysis provides a balanced framework for managing both systematic and unsystematic risks in the stock market. The study underscores the importance of disciplined investment strategies and ongoing market evaluation for long-term success.This topic explores how investors can use both fundamental and technical analysis to manage risks effectively in the stock market. Here's an outline of the key points that can be covered under this topic.