Fundamental analysis or technical analysis

Beginner Questions
1

Hello every one!

I was wondering whether to start with learning Fundamental analysis or technical analysis?
I want to learn both so, I can use both of them and having a better trading toolbox. So, what’s your advice?

2

Get acquainted with fundamentals first - e.g. latest (serious) news items as they drive order flow market sentiment that TAs feed upon.

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3

Thanks for the suggestion mate!

4

The old-time guidance for buying stocks and shares was that FA would tell you what to buy, but TA would tell you when to buy it.

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5

I would go for fundamental analysis obviously because it gives traders a clear idea about market movement. Technical analysis doesn’t provide a long-term view of the market.

6

have you ever looked at weekly, monthly or yearly charts?

perceptions vary (rather a lot!)

to me, the opposite is “obvious” because FA is one of the areas of trading in which an independent, retail trader has almost no chance of being able to compete with the “big players” in the markets, whereas when it comes to TA we have certain advantages over them

7

Hellooo! :blush: You might also want to check out other answers here. :slight_smile: But it’s great that you want to learn both. Good luuuuck! :smiley:

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8

From what I can understand, most traders will rely on technical analysis first but will also keep an eye on the fundamentals as well. I also understand that some traders will only trade one and ignore the other.

9

more answers here:

10

Both fundamental and technical analysis have their advantages and can be effective in their own ways. Fundamental analysis focuses on analyzing economic and financial factors to evaluate a company or asset’s intrinsic value, while technical analysis involves studying charts and patterns to identify trends and make trading decisions. Ultimately, the choice between the two methods depends on the individual trader’s preference and trading style. Some traders prefer to use a combination of both to make more informed trading decisions.

11

You can trade by using a clock and a coin.

Set aside one particular time of the day or night when you will flip the coin.

Heads you buy and tails you sell.

Set a stop loss and takeprofit and let it run it’s course.

Now you have two components that can be redesigned, the clock and the coin.

The clock tells you when to trade, the coin tells you to buy or sell.

In the beginning, forget about fundamentals.

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12

The market only moves in just two directions regardless of whether you trade using fundamental or technical analysis. It moves either up or down. Personally, I think its just a matter of preference. Funny enough the market doesn’t care which one you choose. It just continue its ups and downs as if you don’t exist at all. :man_shrugging: :man_shrugging:

13

What advantages TA gives us?

14

Well, there should be difference. I mean despite what others use, they all have reasons for it

15

It is true that there would be difference in individual analysis. But there would be no difference in where the price of a pair is at that particular moment. For example, Gold closed at 1982 this week. Everyone, whether you are a technical or fundamental trader or both, that is the price of gold. Even for a non trader, the price remains the same. And there are only two directions in which it can move when the market opens. Up or down.
But if all traders were to give sentiment as to why it is currently at that price, a million answers are possible based on individual methods of analysis.

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