Know how to use Fundamental and Technical Analysis

[Woodie]

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.

[taufik123]

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.

[AYOBA]

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.

[tjtonmoy]

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.

[uswa56]

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.

[justdimin]

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.

[suzanne5223]

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.

[GreatArkansas]

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.

[lvsca]

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.

[eXtremal]

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.

[Hamphser]

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.

[Peanutswar]

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.

[Aanuoluwatofunmi]

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.

[barisbilgili]

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.

[Bushdark]

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.

[Subbir]

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.

[mindrust]

So, my friend who just started trading asked me …

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

I am not really believer in the technical analysis nowadays even though I followed it like a cult member in the past. Let me give you an example;

A company that has a very good balance sheet, the sales are booming and the price to earnings ratio is reasonable but, the price is at its ATH. Without knowing these details, a Technical analyst will probably tell you that it is an expensive stock.

But a fundamental analyst will advise you to buy more since it has a lower p/e ratio than its competitors and a very good balance sheet. This guy won’t even check the price or the chart to give you this advice.

I am not saying TA is complete crap but it comes very close.

[Dzwaafu11]

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

Not exactly this but you have some merit on your opinion. Fundamental Analysis is use for long term holdings since you will choose an asset to invest if it has a good fundamentals so that you can guarantee success in the future while Technical Analysis can give you a guide on when to enter and exit through indicator and chart patterns.

Not really mate in trading I think we classify fundamental knowledge as the basic knowledge of what you need to know in trading. When someone says fundamental knowledge, it means that basic knowledge and trading are not the same as holding, as you stated. The OP is talking about trading, not holding, as you stated. However, the fundamental knowledge of trading is the one that will be your guide in everything you want to do in your journey, while the technical aspect is the one that will guide you on how to manage the market, the risk, and the chart of when to buy and when to sell. However, both of these are working hand in hand. In my opinion, fundamental knowledge of trading is guiding you, and the technical aspect also does the same thing, just that technical only focuses on the technical part.

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.

Very important: everything starts with a step, but we can ignore something to make an error, then later change. We need to learn since we are talking about funds. We need to learn before entering the market. We should not make an error before the market changes our lives. We should learn as much as we can, then confidently start the journey. It will be better than having an error, then deciding to change or start seeing changes. However, when I’m talking about risk in trading, I don’t only talk to beginners; I also talk to experts. Some mistakes are unavoidable, and anyone can do them, both beginners and experts, so therefore we need to trade with caution. We all need to use the money we can afford to lose, not just beginners.

[tygeade]

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.

Unfortunately there are "let me just do what this twitter influencers tells me to do" type of people as well. When in reality I agree with you and TA with FA combined would make someone money 90%+ of the time, you should be careful about it, and there are moments when things go south but that doesn't change the fact that you need to be careful and do better.

I hope that people could realize how that could change, and I understand that it may not be something that would be greater but in the end we are talking about something that would get better. Hopefully there will be more and more people who will use TA and FA so that the market will get back into shape and the price could do better as well that's the most important part.

[suzanne5223]

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.

Yes, there's no way to deal with the crypto market in the trading space without the use of TA and FA but it's the chance of the market analysis not being productive at some point is what I am pointing. You said it yourself that the market is unpredictable which technically means despite the TA and FA prediction crypto trading is still just like gambling.
In fact, we can judge this by the stats of crypto traders who quit and those who were successful.
To be honest, it turns out that the best way to deal with this market is long-term investment.