What is the analysis from top to bottom?
from top to bottom is a method of investment analysis that includes investors dealing with a high level investment than they look at more detailed data. After the investor has looked at the potential areas of investment, it gradually narrows the area of investment opportunities by looking at more detailed data oriented data. This method is often used by investors who want to invest internationally who start with the evaluation of the overall economy of the country, eventually help them choose the potential industries, and then companies in these industries in which they would like to invest.
Investors often use the analysis from the top down to assess that the country's economy promises the highest growth over a period of time. Investors are trying to find out which industry of the country's economy shows signs that it will overcome the rest of the country's economy. Once the sector is intended as a good investment, the investor uses more data to determine which specific companies in this sectorThey live, are assumed that other companies in this sector will be performed.
The supporters of the top -down analysis for investment claim that this approach helps to save precious time. Instead of begging the financial statements for tens or hundreds of companies, the analysis allows you to first explore the smaller data group. Investors trying to organize shares for a shorter time could appreciate this approach because they have to decide on investment quickly and regularly.
daily traders use the analysis from top to bottom to not only choose which investment to do, but also decide at what time they should buy. For example, a trader could look at the larger, daily trends of the company's shares to assess whether it is a good investment opportunity. After the investor has decided to invest in shares of the Company's Day supplies trends in 15 minutes and projects whatA specific daily time would be optimal for buying shares and when it would be optimal to sell shares later.
Some debate exists whether the analysis is from top to bottom excellent evaluation of investment opportunities versus from bottom to top. Both methods include a process known as a basic analysis that includes investors collecting data from various sources such as the company's financial statements, trend data in the field and the country's overall economic health. Proponents of the bottom -up analysis claim that some companies are diamonds in harsh, or that they can prosper in industries that otherwise fail. Analytical approach from top to bottom would lead potential investors from these companies because industrial data would not be attractive.