Technical and fundamental analysis are frequently used by stock pickers to narrow their options. It's up to them how and when to use them, but each has its own advantages.

Fundamental research aims to identify undervalued stocks with high growth prospects at a reasonable price by analyzing the business and economic conditions of the underlying firm and the industry in which it operates. Traditionally, investors use fundamental analysis to make longer-term decisions based on factors such as earnings per share, price-to-earnings ratio, price-to-earnings-growth, and dividend yield.

In contrast to focusing on the fundamentals of a company, technical analysis looks for patterns on stock charts that may predict future price and volume movements. There's no point in going over a balance sheet since stock prices already provide all the publicly accessible information about the company. Technical analysis, which focuses on price and volume movements, has traditionally been used for short-term trading.

Picking stocks using fundamental and technical analysis combines a company’s financial strength with market behaviour. Fundamental analysis focuses on evaluating a company’s earnings, revenue growth, balance sheet, cash flow, and valuation ratios like P/E and P/B to determine its true value. It also considers industry trends, management quality, and economic conditions. Technical analysis, on the other hand, studies price charts, volume, trends, and indicators such as moving averages and RSI to identify entry and exit points. By using fundamentals to select strong, undervalued companies and technicals to time trades effectively, investors can reduce risk and improve consistency. This combined approach helps traders avoid overvalued stocks, spot trend confirmations, and make more informed, disciplined investment decisions in different market conditions.