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Individuals perform market analysis when they want to know where to invest money or to how to grow their businesses. For instance, investors interested in commodities markets might compare the statuses of gold, oil, and silver to learn which market is most promising. Likewise, business professionals might study various demographics by location, age group, and income bracket to learn where to sell their products. Market analysis systems are computer networks or series of databases that pull intelligence from different sources to give professionals clear views of economic or financial markets. Two basic types of market analysis systems are programs that perform technical analysis and programs that perform fundamental analysis.
When market analysis systems perform technical analysis, they are gathering data based on market history. For instance, if an investor wants to judge the stocks of a certain company, he or she might look at the history of that company's stocks. Chances are that an investor might look for economic indicators that tell him or her how stocks might behave in similar economic environments. Investors who use market analysis systems for technical analysis may study factors such as competitor performance in similar business environments. Market researchers might use these systems to learn how certain products or services performed with certain demographics in the past.
Market analysis systems used for fundamental analysis, on the other hand, tend to function in real time. In other words, professionals use these systems to monitor the actual statuses of markets, stocks, and other financial instruments. These kinds of systems are popular among investors who are interested in day trading and other kinds of investment tactics in which stocks generally are bought and sold within 24 hours. Fundamental market analysis systems also are common among business executives who like to closely monitor the positions of their companies.
While some traders and analysts prefer one type of system over another, it is common to find market analysis systems that include both functions. These systems usually access intelligence from websites, newspapers, and other financial and trade resources. Many of these analysis systems are considered business intelligence systems that include interfaces in which users can share information, bookmark resources, and store relevant intelligence.
Many professionals prefer market analysis systems that can be purchased and installed on their computers. Others prefer to use software as a service systems. Instead of purchasing these systems, individuals pay subscription fees to access these programs, often from any location. The kind of access model an individual chooses depends normally on his or her budget and access to information technology professionals who can perform updates and troubleshooting.