What is Technical and Fundamental Analysis?

This is a discussion on What is Technical and Fundamental Analysis? within the New to Trade2Win forums, part of the Reception category; Technical analysis means trading or forming a strategy on the basis of historical price movements, shape of candles. It involves ...

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Old Apr 19, 2017, 10:02am   #33
 
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Technical analysis means trading or forming a strategy on the basis of historical price movements, shape of candles. It involves pattern recognition on the price chart. On the other hand, fundamental analysis involves taking into consideration economic factors and assessing them to the best advantage. Fundamental analysis involves reviewing the economic & political factors that affect the currency movement. However the best trading strategy can be form by combination of both the trading styles.
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Old May 9, 2017, 8:56am   #34
 
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I also agree with the previous comment that the best trading strategy can be form by the combination of both the technical & fundamental analysis. Both have their own relevance and any one of them can’t be ignored.
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Old May 14, 2017, 1:13am   #35
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Fundamental analysis:
Trade the market based on Geo-Politics, economic situations and news releases comes under Fundamental analysis.

Technical analysis:
Trade the market based on indicators, charts and candlesticks comes under Technical analysis.
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Old Sep 25, 2017, 11:35am   #36
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Fundamental Analysis practitioners tend to focus on economics, for eg, company economics in the case of equities speculators or national and international economics in the case of currency speculators. The equities camp study things like company debts, earnings and cash flow whereas the forex camp study things like inflation, interest rates, GDP growth and trade balance sheets, etc. All of these economic indicators helps to determine the value an instrument such as a specific stock or a currency pair (for eg, Vodafone is an instrument in the UK equities market and $USD/$GBP is an instrument in the Forex market) in order to find out the future prospects. If a share or currency looks cheap in the present day and all the indicators are suggestive of the fact that it would be more valuable in the future then Fundamental Analysis practitioners would definitely buy it.
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Old Sep 27, 2017, 2:09pm   #37
 
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Technical analysis - easier to automate compare to Fundamental analysis...
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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