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Topic: Know how to use Fundamental and Technical Analysis - page 2. (Read 465 times)

full member
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OP is correct, Both Fundamental and Technical Analysis are required to conduct trading professionally, but it depends on which one you give more importance to, generally a little can be done at any time by trading, but if you want to trade professionally or for a long time, a lot of study is required.
sr. member
Activity: 854
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Everything in life begins with a step; one error can change your entire world, thus in terms of trading, a person must be familiar with the two concepts you described earlier: fundamental analysis and technical analysis. It is critical for us to acquire understanding about trading before we enter it, especially we beginners. Because understanding the concept of trade allows you to appreciate and benefit from it while also knowing how much money you can afford to start with.
Trading is very risky even more risky than holding. For us to make profits from the market, we need to invest responsible.ans keep our trading safe and concise not trading too much. Technical analysis is what we can learn  and utilize it in our trading to have a good results as a trader. Technical analysis is mostly used to analyze the market and get a better view of what the market is planning to do. Virtually all traders make use of the technical analysis to get trading easier and ncrease profits rate.
sr. member
Activity: 812
Merit: 252
I think people will understand it better from direct practice. because trading theory is very broad and will never end no matter how it is studied. One person simply sticks to one trading style until he is truly consistent in producing results. This is the best way to get to know these two methods of analysis.
Practicing what we understand in trading will make us have more experience in the trading we do and we can also increase our knowledge about trading so that we can gain profits from trading, when we consistently do what we understand well. Well, of course we will be able to make a profit from the trading we do.
sr. member
Activity: 532
Merit: 390
Fundamental tells you what to do, while Technical tells you when to do it

It's very important that we learn all these and to put them into practice, they are indications that will set our mind on the best priority for our own interest while making plans for a particular trade we wanted to engage in, however, using this is not an exit route to stay out of making loss, it only helps towards having the best achievement in our research althrough the trading time duration while we are also speculating on some possible features before making a trade.
hero member
Activity: 1498
Merit: 974
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For the people who want to engage in investment regarding the crypto knowing with this TA is a must because this serves as a guide to them with their investment execution for their entry and exit to their investment,. I highly recommend at least using the basics of support and resistance even pro I guess seems to keep doing this because this strategy gives you a hint for another pump, continuous dump or even just a sideways of the market. Aside from it, ideal to use of the technical indicators like MACD this is not the only one but the most basic one and beginner friendly too. Always set a plan, stick to it if doesn't work change, find the mistake and learn from those.
sr. member
Activity: 2436
Merit: 324
So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it
To be fair, I do kind of "know" how to use it, obviously there is always something else to learn, but I do kind of know enough to say that I do, but that still doesn't mean that I am going to trust them completely in a blind manner, that doesn't work like that. You should always be careful about what you are doing and what that could mean. I personally believe that the best thing people can do would be getting to a point where they will just invest long term and still be happy about it.

I mean think about it, if you invest 1 million dollars, at 25k which was just like a month or so ago, today that would be over 1.5 million dollars, in a month, more money made in less than two months that most people do not make in their entire life.
I agree with what you said and that's the exact reason why I never liked crypto trading because knowing how to use fundamental and technical analysis skills is not enough to make a strive trade because there will always be something missing at some point due to the market volatility.
Having fundamental and technical skills is good but doesn't justify a successful trade and the best way to have success is by making long-term investments in crypto like BTC, or altcoins that will always make new ATH prices when it is BTC block halving market.
Whether you do like it or not, there's nothing you can do but to deal up with TA and FA. How you would really be gonna able to deal up with this unpredictable market? Doing some intuition picking or entry?
thats just pure gambling in the sense. This is why you wont really be having no choice but to know on how to make use of it or else then you would really be finding yourself would really be lost into this market.
You would really be that prone to mistakes and non ideal entries on which you should really be that wise on taking up actions or else you would really be ending up on committing lots of mistakes.

Technicals plus having those fundamentals if possible available then it would be wise on making use of both. Try to make some analysis through it whether it would really be that
pushing up or would really be dumping down but of course you should really that instill into your mind that its never been that precise 100% about these tools
for you to make use on trading but it is really that much better compared on making yourself that making positions without any basis.
sr. member
Activity: 2106
Merit: 282
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I think people will understand it better from direct practice. because trading theory is very broad and will never end no matter how it is studied. One person simply sticks to one trading style until he is truly consistent in producing results. This is the best way to get to know these two methods of analysis.
sr. member
Activity: 1792
Merit: 293
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I don't want to be complicated. I got fundamentals from news media on Telegram, and technicals I got from the market based on my own analysis. If we learn about the theory of these two analyzes from the basics, it will take a long time so we might forget the practice. I have to believe that if we do it with practice it will be much more understandable than just theory.
legendary
Activity: 2282
Merit: 1344
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So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.
Honestly it's all about preference, besides choosing between the two depends on what asset you trade as they react differently to fundamentals(news) and price volatility is more during news time which is something some traders love unlike technical trading that is rules based regardless of news.

Fundamental tells you what to do, while Technical tells you when to do it
Tbh, these two compliment each other, if you can find a way to use them both then your trading style can be greatly improved.
This is the best answer so far.
Nothing is wrong with using either of the two because a lot of traders already already making profits using them. So yeah, it will be your preference.

However I see most active traders using technical analysis, and some use fundamental analysis as a second opinion.

Just like me, if I trade, I am always going with technical analysis.
hero member
Activity: 2590
Merit: 650
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So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it
To be fair, I do kind of "know" how to use it, obviously there is always something else to learn, but I do kind of know enough to say that I do, but that still doesn't mean that I am going to trust them completely in a blind manner, that doesn't work like that. You should always be careful about what you are doing and what that could mean. I personally believe that the best thing people can do would be getting to a point where they will just invest long term and still be happy about it.

I mean think about it, if you invest 1 million dollars, at 25k which was just like a month or so ago, today that would be over 1.5 million dollars, in a month, more money made in less than two months that most people do not make in their entire life.
I agree with what you said and that's the exact reason why I never liked crypto trading because knowing how to use fundamental and technical analysis skills is not enough to make a strive trade because there will always be something missing at some point due to the market volatility.
Having fundamental and technical skills is good but doesn't justify a successful trade and the best way to have success is by making long-term investments in crypto like BTC, or altcoins that will always make new ATH prices when it is BTC block halving market.
hero member
Activity: 2968
Merit: 670
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So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it
To be fair, I do kind of "know" how to use it, obviously there is always something else to learn, but I do kind of know enough to say that I do, but that still doesn't mean that I am going to trust them completely in a blind manner, that doesn't work like that. You should always be careful about what you are doing and what that could mean. I personally believe that the best thing people can do would be getting to a point where they will just invest long term and still be happy about it.

I mean think about it, if you invest 1 million dollars, at 25k which was just like a month or so ago, today that would be over 1.5 million dollars, in a month, more money made in less than two months that most people do not make in their entire life.
full member
Activity: 812
Merit: 210
Everything in life begins with a step; one error can change your entire world, thus in terms of trading, a person must be familiar with the two concepts you described earlier: fundamental analysis and technical analysis. It is critical for us to acquire understanding about trading before we enter it, especially we beginners. Because understanding the concept of trade allows you to appreciate and benefit from it while also knowing how much money you can afford to start with.
When we start to enter trading, of course we have to understand well the trading we are going to do in order to reduce the risk of failure in trading because if we cannot understand it well and start, we will certainly lose the money we have in the trading we do, when If we understand it well then we will be able to gain profits from the trades we make.
sr. member
Activity: 1008
Merit: 366
Fundamental analysis comes to play only when you are choosing something that is new. You have to dig deeper in order to search for who is behind it, who is pulling the strings, what can they do with this project in the future, does the project have the potential to rise up or go down, how much demand are in the market for this project which will make this project a success. Combine everything and when you come up with the decision that is called fundamental analysis. Fundamental analysis focus on the future after meeting some conditions that are required or indicates either the project will be a success or a failure.
Technical analysis focuses on past performance, historical data, events that are similar which will happen in the future etc. technical analysis focus more on the past and present in order to collect data to give a clear view of the existing market. In this case you have something that exists already and have a history of being successful or a failure. This is commonly used for short-term trading.
But most people use both of them and combining them they create their own strategy. Based on your investment plan, you need to use either of them or both of them if you want to have the best result.
full member
Activity: 266
Merit: 140
Everything in life begins with a step; one error can change your entire world, thus in terms of trading, a person must be familiar with the two concepts you described earlier: fundamental analysis and technical analysis. It is critical for us to acquire understanding about trading before we enter it, especially we beginners. Because understanding the concept of trade allows you to appreciate and benefit from it while also knowing how much money you can afford to start with.
legendary
Activity: 2464
Merit: 1703
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In all honesty, I think there's a third that should be added to Fundamental and Technical Analyses. It should be Manipulative Analysis. While I advise that Fundamental and Technicals (I love TA) should be a must-to-know for everyone trading and wanting to be successful, traders should also know that's not all there's to trading the market. Sometimes the technicals and fundamentals can align but trades won't go that way and that's because there's manipulation somewhere. I know that FA rules in cryptos more than TA where the market reacts instantly to news even when TA is saying the opposite. This can't be said to be so in Forex Trading where news can be positive and TA is positive but market will go the opposite direction just to clear Stop Losses out. That's manipulation and that has to be studied and mastered too.
Manipulative analysis is also not to be overlooked as it is important to pay attention to how the whales manipulate to get cheaper prices.
This does relate to Fundamental Analysis as well and will greatly affect how Technical Analysis works.

The manipulative analysis will also disturb the psychology of every trader, so it is necessary to do psychological management so as not to panic too much when manipulation is done by people who have the power to influence the market.

I always say don't go against the flow, just follow them and take the best opportunity to capitalize on any manipulation that is done.
As small traders that's all we can do.
hero member
Activity: 1792
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So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.
Honestly it's all about preference, besides choosing between the two depends on what asset you trade as they react differently to fundamentals(news) and price volatility is more during news time which is something some traders love unlike technical trading that is rules based regardless of news.

Fundamental tells you what to do, while Technical tells you when to do it
Tbh, these two compliment each other, if you can find a way to use them both then your trading style can be greatly improved.
hero member
Activity: 1694
Merit: 516
So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it


Technical analysis is a great tool that every trader should be using, because there is so much information, we can extract from the past trading data and it's publicly available for free. To me it's pretty obvious that there are patterns in trading, we can see that there are bull and bear cycles that tend to control the overall market sentiment. Identifying these cycles is very helpful and I try to use strategies that focus on selling at the start of a bear market and buy at the start of a bull market. These so-called Mean Reversion strategies focus on the fact that investors tend to overbuy when there is a good sentiment and oversell when the mood is turning. The strategy works very well together with Moving Averages, because here you get a broader indication of the trend and can identify if the current price is above or below the trend. The number of indicators we can choose from with Technical Analysis is endless and it doesn’t make sense to try and include as many different indicators as possible. Every trader needs to identify for himself which works best for his strategy and focus on the most important ones.
hero member
Activity: 2702
Merit: 704
So, my friend who just started trading asked me which is better Fundamental and Technical Analysis. So, this is the reply I gave which I also decided to share with others who don't know how this works hand in hand.

Fundamental Analysis and Technical Analysis are not inherently better than each other. Fundamental Analysis allows you to assess the potential direction of a coin's price, whether it's bearish or bullish. For instance, you can observe how Bitcoin's price has responded to positive news, which you can find on exchanges news insights, as well as popular news apps. Technical Analysis comes into play to further analyze price movements. Is just as easy as that.


Fundamental tells you what to do, while Technical tells you when to do it
The explanation that you gave your friend was good enough, fundamental analysis is without a doubt a useful tool, but its main weakness is that it does not really tell you when the assets you have picked will go up in value, fortunately TA can cover that weakness and tell you with a decent accuracy when to sell and buy the assets you like.

So tell your friend they cannot really disregard either one and if anything they should try to master both, not an easy task of course, but if they are serious about becoming a trader then this is something they will have to do.
legendary
Activity: 2674
Merit: 1208
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In all honesty, I think there's a third that should be added to Fundamental and Technical Analyses. It should be Manipulative Analysis. While I advise that Fundamental and Technicals (I love TA) should be a must-to-know for everyone trading and wanting to be successful, traders should also know that's not all there's to trading the market. Sometimes the technicals and fundamentals can align but trades won't go that way and that's because there's manipulation somewhere. I know that FA rules in cryptos more than TA where the market reacts instantly to news even when TA is saying the opposite. This can't be said to be so in Forex Trading where news can be positive and TA is positive but market will go the opposite direction just to clear Stop Losses out. That's manipulation and that has to be studied and mastered too.
legendary
Activity: 3052
Merit: 1129
Dont base your trading just on FA or TA. The TA is only a 50-50 game because it is a pseudo-science and not based on concrete evidence. It can only make a prediction as to where the market might be moving to and you have to decide how to want to play it. Remember not to put your full decision making on TA. It is more applicable when it comes to day trading and less to long term trading.

Because in long term you can balance out a lot of things, you buy at low discounted prices and sell at inflated prices without looking at TA for sudden or quick changes.

TA or FA will not make you a market expert, in fact nobody can be one, but try to make money off the market to our maximum capability.
I completely agree that TA or FA all can fail and you can not win 100% positions you open with TA or FA.

Don't invest what you can not afford to lose.
Don't trade what you can not afford to lose.

Two sentences look pessimistic but it is about risk management as well as how you have ace under your sleeves when things go wrong and you still have second plan to live through it without suicide.
And this is what you do need when you do really hover yourself on dealing  with trading on which these kind of analysis or approach wouldnt really be giving out that precision in terms of success rate or being profitable.
Yes, it doesnt give out assurance but its the best things that you should really be needing for you to now or something that really needs to be learnt up or else you are just basically doing yourself some gambling.
This is a must skill that should really be needing to be done or really needs to learn so that you would really be able to make yourself that be sustain on how to deal up with this unpredictable space.
Just put up into your mind that risks management would really be that so crucial and emotion handling.

You would really be able to find on yourself on how to deal up with this market which you would be making out adjustments accordingly basing up on what you have that experienced.
Its impossible that you wont really be able to assess up things basing up into those actual experience previously which it would really be giving out that kind of idea.
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