Investigation On Investment Analysis Technology Using The Value Of Enterprise As A Guide

Securities investment technical analysis is currently is widespread and significantly influential investment tools in Shanghai and Shenzhen stock market in China.But the securities investment technical analysis theory has been considered to lack solid theoretical foundation all long.There has been much dispute about the effectiveness of technical analysis.Profit obtained by technical analysis is unstable in reality.In present paper,taking the concept of investment and speculation of stock market as a start,the defects of theoretical basement of technical analysis method were analyzed The speculative of technical analysis method was illustrated combining an example.The theoretical foundation,actual application and the principle of application about value investment were investigated.Conclusion as follows:(1)Securities speculative frequently bring investors with unbearable negative consequences due to their own high-risk characteristics.Therefore,it is very important for ordinary investors,to treat investment rationally,to recognize the consequence of speculation and to ensure the relative safety of principal.(2)Basic assumption conditions of securities investment technical analysis method are:market behavior includes all information,price evolves according to tendency.The fluctuation of price has repeatability.All of that are objective to reality. Its theoretical basis exist certain flaws that will cause the strong uncertainty of investment results.(3)Technical analysis method of securities investment is a theory based on small probability theory from the views of the reasons influencing fluctuation of price,the characteristics of income source of securities,the characteristics of securities market and the fluctuation principle of securities market price.Guiding investment with the theory has a strong speculative.Its useful value for ordinary investors is very limited.(4)Through investigating classical technical analysis methods such as K line theory,wavy theory,pattern theory,following was proved:securities investment guided by technical analysis methods has a great risk and uncertainty to most investors and it lacks effective guarantee to investment returns.(5)Value investment theory based on the research of the intrinsic value of the enterprise has stronger rationality and logic,and its theoretical basis is more reasonable.It is helpful for investors to get sustained,stable and safe and reasonable investment returns by paying attention to the intrinsic value of the enterprise and to the principal investment long-term returns to normal safety investment strategy.