1. What is the difference between fundamental and technical analysis?

Fundamental analysis examines the “health of the company" with its focus primarily on a company’s financial statements and growth potential. Technical analysis examines market price charts and performance data, such as trading activity, to interpret prices over the short term.

2. Is a debt-free company always a good buy?

Not necessarily. A debt-free company is less risky, but it could also imply that the company is not expanding or is not growing either. Either of the two, namely growth and debt, needs to be considered in relation to the operations of the company before investing in it.

3. Can I rely solely on the P/E ratio to pick stocks?

No. The P/E ratio shouldn't be used in isolation. A low P/E ratio can indicate that the company has problems, whereas a high P/E ratio can be normal if the firm is growing very fast. Always look at earnings growth and compare this with similar companies.

4. How often should I check the fundamentals of my stocks?

The fundamentals of stock do not change every day. It is sufficient to go through quarterly results every three months and annual reports once a year to find out if the company is doing well or not.