Technical Analysis VS Fundamental Analysis, Which Is Better?

Trading Forex With Zi Cheng
fong zi cheng

The debate between technical analysis and fundamental analysis has been ongoing in the world of investing and trading. Each approach has its strengths and weaknesses, and the effectiveness of one over the other can depend on various factors, including the market conditions, investment horizon, and the preferences of the investor or trader. Let's explore the key characteristics of both:

Technical Analysis: Focuses on historical price and volume patterns, uses charts and indicators, and is often associated with short-term trading. It emphasizes market psychology.

Fundamental Analysis: Examines a security's intrinsic value by analyzing financial statements, economic indicators, and industry trends. It's associated with a long-term perspective and uses valuation metrics.

Which is Better? It depends on factors like investment horizon, market conditions, and personal preferences. Many successful investors use a combination of both approaches.



Copyright reserved to the author

Last updated: 10/26/2023 15:28

222 Upvotes
47 Comments
Add
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2024 Tradinglive Limited. All Rights Reserved.