TA's are usually based on the historical price movement and market statistics, including the calculation of volume of trades per day/weeks/months and current coins/tokens in circulation.
While fundamental news is predicting price movements using the world events and project development that could potentially influence the crypto market.
IMO, If you could both use this two when you're trading you'll for sure reducing the risks of a lossing trades.
Nevertheless, neither of the two is a good tool to predict the price movements, but using both is better.
Topic: Which type of trading you think is good? - page 8. (Read 1270 times)
Rather than professional trading I find the trading practice with small funds to be a better choice. In such trades one can minimize the loss and execute trades in a very short time period. I always go for trading with a small difference between the buying and selling price generating minimal profit. As the market keeps fluctuating, profiting can be made regularly.
In my opinion, it's best to enjoy the best of both worlds – utilizing both methods of analysis in order to make profit. I've seen cases where fundamental analysis (news/ events) don't move prices like in a bear market, in such cases, it's good to have the basics of technical analysis at least in order to navigate the market. Here's some reasons why I think you should use both :
1. They are both tools in your toolbox– use them: there's no doubt that you can make profits with either analysis but it gets better if you use them together. Imagine a project releasing a major news just when the price is sitting at a critical support level? That's right.
2. Use them to confirm your bias: Since trading is all about know price action movement, it's important to pay attention to details. For instance, If price is moving towards a major resistance with a news, no matter how big that news is, you have to take a step back and watch what happens at that level - did sellers came in to push the price down? If no, continue riding the trend, if yes, set a trailing stop loss.
3. Catching trends early and making better entry and exits points:
This is similar to everything I've written so far. You can use news/event aggregators like coinmarketcal and get events like Mainnet launch / updates etc or any other news that could move prices. What do you then do? You use TA to ensure that you're buying at a good zone so you can maximize your profit margin and probably zones where you want to exit your trades/ positions.
I've seen people who are successful trading with only fundamental analysis, I have also seen people profit with technical analysis. But the best part is when you can use both tools to your advantage and increase the market odds in your favour.
1. They are both tools in your toolbox– use them: there's no doubt that you can make profits with either analysis but it gets better if you use them together. Imagine a project releasing a major news just when the price is sitting at a critical support level? That's right.
2. Use them to confirm your bias: Since trading is all about know price action movement, it's important to pay attention to details. For instance, If price is moving towards a major resistance with a news, no matter how big that news is, you have to take a step back and watch what happens at that level - did sellers came in to push the price down? If no, continue riding the trend, if yes, set a trailing stop loss.
3. Catching trends early and making better entry and exits points:
This is similar to everything I've written so far. You can use news/event aggregators like coinmarketcal and get events like Mainnet launch / updates etc or any other news that could move prices. What do you then do? You use TA to ensure that you're buying at a good zone so you can maximize your profit margin and probably zones where you want to exit your trades/ positions.
I've seen people who are successful trading with only fundamental analysis, I have also seen people profit with technical analysis. But the best part is when you can use both tools to your advantage and increase the market odds in your favour.
This two were important factors in trading, since news cam hype the traders or investors to buy or sell. While Technical Analysis can bring us more idea whether that project is worth investing and we can be able to trade it by monitoring the charts. We must Abe updated with these 2 or atleast have one that is mastered and see for ourselves if which method works on us best, but first we should try both.
I'd say it depends on the markets. If there are no fundamental changes (good/bad news) in a week or so, TA would be reliable (to some point), assuming volume is not an issue. If that's not the case, I'd trade on news. If that's not the case either, I'd step away from the market and chill for a while.
I'm not going with existing theory. I have categorized trading as follows-
1. Based on technical analysis
2. Based on event news
While I'm not much expert in TA, I can achieve it if I spend some hours a day for a month I belive.
On the other hand, trading based on event news is pretty easy. You don't need to have much knowledge other than the capacity of ebaluating a project.
What do you think? Which method is good?
1. Based on technical analysis
2. Based on event news
While I'm not much expert in TA, I can achieve it if I spend some hours a day for a month I belive.
On the other hand, trading based on event news is pretty easy. You don't need to have much knowledge other than the capacity of ebaluating a project.
What do you think? Which method is good?
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