As an investor in the stock market, it’s essential to understand both technical and fundamental analysis. These approaches are valuable for predicting a company’s stock price movements in the capital market.
Fundamental analysis focuses on evaluating the intrinsic value of an asset based on the company’s financial and operational performance. In contrast, technical analysis examines market actions, such as price and volume movements, to forecast future price trends.
This was highlighted by Meinanda Kurniawan, a lecturer at Padjadjaran University, during a guest lecture titled “Stock Simulation and Technical Analysis” at the Bandung Institute of Technology School of Business Management (24/2).
According to Kurniawan, two analytical tools can facilitate stock trading simulations, which benefit investors looking to minimize their financial risks. “This simulation allows investors to practice trading strategies in a safe environment before applying them in the real market,” he explained.
Kurniawan mentioned that several applications currently provide stock simulation platforms for prospective investors to help them understand trading mechanisms. He added that with a thorough understanding and proper training, investors can make more informed decisions when investing in the Indonesian capital market.
Additionally, Kurniawan suggested that individuals interested in becoming certified capital market professionals can obtain certification from the Indonesian Capital Market Institute (TICMI). This educational institution offers professional capital market certifications recognized by the Financial Services Authority. TICMI also conducts certification exams for capital market professionals in Indonesia.
