There are certain important theories of technical analysis that are helpful in conducting technical analysis of the market. These include
Fed Model for market forecast was Fed in 22nd July 1997. This model becomes popular due to its simplicity & relative accuracy over time periods. There is simple assumption of this model that on the basis of asset with higher yield, the investors easily switch between stocks & bonds which make the returns of the stock to restore an equilibrium relationship between two assets.
Industry analysis refers to the assessment of different industries by using strategy in order to find out the potential and most profitable industry for the purpose of making investment in it. It is good to conduct economic analysis before starting industry analysis so that it can be performed in the light of the economic analysis. This will provide better results.
Derivative assets are those assets whose value is derived from some other assets. Futures & options are two main categories of best known derivative assets. Other derivative assets include swaptions, swaps and inverse floaters, each of these have different risk features. Plain vanilla derivative assets are mostly useful to mutual funds, pension funds, corporate treasurers, endowments and financial institutions. Not all derivative assets are similar; some are highly conservative while some are inherently speculative.
Value investing & growth investing are two approaches to investing that are considered by the investors in making investments. Each one has its own characteristics and advantages. The investors which are interested in value investing are referred as value investors while the other ones are considered as growth investors.