Fundamental vs technical analysis

Transcript

What Hira says, in Roman Urdu, with the English translation beneath each line.

1. 0:04Assalam-o-Alaikum, welcome to danioPSX. Aaiye seekhein, financial independence ke liye.Assalam-o-Alaikum, welcome to danioPSX. Let's learn, for financial independence.
2. 0:14Ye hai lecture number twelve. Aaj hum seekhenge fundamental aur technical analysis mein kya farq hai, aur beginner ke liye kaun sa kab kaam aata hai.This is lecture twelve. Today we learn the difference between fundamental and technical analysis, and which one helps a beginner when.
3. 0:29Faisla karne ke do main tareeqe hain. Fundamental analysis poochta hai: ye business kitne ka hai? Technical analysis poochta hai: price chart buyers aur sellers ke baare mein kya bata raha hai?There are two main ways to decide. Fundamental analysis asks: what is this business worth? Technical analysis asks: what is the price chart saying about buyers and sellers?
4. 0:46Fundamental analysis company aur economy ko dekhta hai. Idea simple hai: lambe arse mein share prices profits aur dividends ke peeche chalti hain.Fundamental analysis looks at the company and the economy. The idea is simple: over the long run, share prices follow profits and dividends.
5. 0:57Is mein dekhte hain kai saal ki sales aur profit growth, EPS, dividends, return on equity, debt, aur valuation, jaise P/E, sector ke muqable mein.It looks at several years of sales and profit growth, EPS, dividends, return on equity, debt, and valuation, like P/E, compared with the sector.
6. 1:03Iski taqat: asal value par focus, aur long-term investor ke liye munasib. Kamzori: seekhne mein waqt lagta hai, aur sasta stock saalon tak sasta reh sakta hai.Its strength: a focus on real value, suited to long-term investors. Its weakness: it takes time to learn, and a cheap stock can stay cheap for years.
7. 1:16Technical analysis price aur volume ki history se trend aur buyers sellers ka balance samajhta hai. Is ke tools hain moving averages, support, resistance aur volume.Technical analysis uses the history of price and volume to judge the trend and the balance of buyers and sellers. Its tools are moving averages, support, resistance and volume.
8. 1:25Fifty-day average medium-term trend dikhata hai, aur two hundred day long-term. Lekin ye signals aksar late hote hain, aur sideways market mein false alarm dete hain. Inhein context samjhein, command nahi.The 50-day average shows the medium-term trend and the 200-day the long-term. But these signals are often late and give false alarms in sideways markets. Treat them as context, not commands.
9. 1:40danioPSX ke stock page par dono milte hain. OGDC ke example mein, Financials tab par sales, profit after tax aur EPS ka saal ba saal record hai.The danioPSX stock page has both. In the OGDC example, the Financials tab has the year-by-year record of sales, profit after tax and EPS.
10. 1:54Aur Overview mein technical summary hai: trend reading, moving averages se faasla, RSI aur pivot levels. Page khud likhta hai: ye trend ki description hai, forecast nahi.And Overview has the technical summary: the trend reading, distance from the moving averages, RSI and pivot levels. The page itself says: this describes the trend, it is not a forecast.
11. 2:08Ye table dono ka muqabla hai. Fundamental ka time horizon months se years, technical ka days se months. Fundamental batata hai kya own karein, technical entry aur exit ki timing mein madad karta hai.This table compares the two. Fundamental's horizon is months to years, technical's is days to months. Fundamentals help choose what to own; technicals help with the timing of entries and exits.
12. 2:27Beginner ke liye lesson kehta hai: fundamentals se company chunein, simple technical tools sirf sanity check ke liye, aur baar baar trading se bachein, kyun ke har trade par commission aur tax lagta hai.For a beginner, the lesson says: choose the company on fundamentals, use simple technical tools only as a sanity check, and avoid frequent trading, because every trade costs commission and tax.
13. 2:46Jo bhi sure-shot technical signals bechta hai, us se hoshiyar rahein. Charts news ko reflect karte hain, news ki jagah nahi lete.And be very wary of anyone selling sure-shot technical signals. Charts reflect the news; they don't replace it.
14. 2:57To aaj humne seekha: fundamental analysis business ki value dekhta hai, technical analysis chart, aur beginner fundamentals se chune, chart se check kare. Homework: ek stock page par Financials aur technical summary dono parhein.So today we learned: fundamental analysis looks at the business's value, technical analysis at the chart, and a beginner chooses on fundamentals and checks with the chart. Homework: read both Financials and the technical summary on one stock page.
15. 3:19Next lecture mein hum EPS, P/E aur growth samjhenge, aur fundamentals page parhna seekhenge. Video achi lagi ho to subscribe karein. Ye sirf education ke liye hai, investment advice nahi. Allah Hafiz!In the next lecture we'll understand EPS, P/E and growth, and learn to read the fundamentals page. If you liked the video, please subscribe. This is for education only, not investment advice. Allah Hafiz!