Techniques Used in Investment Management Software

Investment management software techniques fall into 2 major camps: technical analysis and fundamental analysis. Technical analysis looks at the price of the security and its pricing trends over time. This analysis will allow the investor to monitor the mood of the market surrounding the security. The trends can reveal that a security trades at an over-sold or over-bought environment for the investor to make buy or sell decisions. Fundamental analysis will examine the underlying company with price as secondary consideration. Once this analysis ends, companies with superior management and market position will emerge. Read on and learn how these two investment management software techniques work for a wide range of business and organizations.

Technical Analysis

This investment management software method works by analysing statistics generated by market activity, like past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. The investment management software will determine the short-term price direction of the security by monitoring the historical price and trends and predicts whether those trends will repeat in the future.
Fundamental Analysis

Fundamental analysis is an investment management software method of evaluating a security, which entails attempting to measure its intrinsic value by examining related economic, financial and other quantitative and qualitative factors. The investment management software attempts to study everything that can affect the value of the security, including macroeconomic factors like the overall economy and industry conditions and company specific factors like financial condition and management.

The investment management software uses quantitative and qualitative analysis to get a full picture of the business. Many times the qualities of the business will not show up in the numbers and those qualitative factors can provide the investment management software with an edge.