Once we are through with the industry analysis, then comes the corporate analysis. Again, let us take the example of FMCG market. In an FMCG market, there are so many players. The creamy layer involves Multi National Companies(MNCs), followed by Large Indian Corporate Conglomerates, Listed Limited Companies, Closely Held Companies, MSME’s, Private Limited Companies, Partnerships & Sole Proprietor Companies. We need to consider the volume of business done by all these operators to come to a conclusion. Then comes the question of freezing on couple of listed companies on whom we can bet. Subsequently, we do an analysis to finalize the best company out of the shortlisted companies.This is a top down approach, in which we start right from the industry, then we come to the size of the market, followed by the best organization in that particular market. This is a proven method for both trading & investing. When we trade, we just enter the share at the right price & exit when the target price is reached. This target price is decided based on many technical parameters like demand, supply, price action & indicators. Sometimes, especially when these novice traders come to the share market & start trading, market dynamics become different & the trade can go against them. When they do a top down analysis like this, even when the market goes against their calculations, they can hold on to these shares for a while & them exit when the appropriate price is reached. Even if they hold on to these companies for a while, nothing happens to the trader who has become an investor, as they can afford to hold on to these shares due to their strong fundamentals.