Technical Analysis vs Fundamental Analysis

Technical Analysis vs Fundamental Analysis

Technical or fundamental analysis. Which is better. I dont think this argument is going to end soon. Some fundamental analysts think technical analysis in nonsense. Technical analysts have their own points to prove they are right. There is also some successful traders who combine both technical and fundamental analysis.

Both methods have its own positives and limitations.

What is fundamental analysis

Fundamental analysts try to find value of stocks with its financial data. They use financial data to analyse underlying value of the stock and project future growth prospects of company.

What is technical analysis

Technical analysts studies historical data of stocks that include price and volume. Technical analysts try to predict future price movement using past movement of stock price.

 I used to trade fundamentally good stocks when they reach attractive levels. Those were mainly for positional trades and investments. Below videos explains basic concepts of technical analysis and compare technical analysis and fundamental analysis.

Watch below video for more details and difference between fundamental analysis and technical analysis.