Novice Investor - Technical Analysis VS Fundamental Analysis
Technical Analysis Vs Fundamental Analysis
When you begin investing its important to identify how you are analyzing your choices. Most of your research will either fall under "Technical Analysis (TA)" or "Fundamental Analysis (FA)".
TA generally involves evaluating a companies value through its stock/cryptocurrency performance. You will need to know how to read a basic chart and familiarize yourself with metrics such as moving averages and support & resistance.
FA is when you base a company's/crypto value off of the actual logistics and management of the company. Things like economic conditions, company analysis, industry outlook, and financial statements need to be considered.
Most view FA as more of a long-term approach than TA even though it varies based on the circumstances.
Before I go any further let me say that I don't think one of these strategies is better than the other. It all just comes down to your particular skill set. For me personally, I can say I spend around 80% of my time doing FA and the other 20% TA. I consider myself a beginner when it comes to charting but I do understand the fundamentals. Between steemit and tradingview.com I have access to some pretty good traders to get insight from so I don't dig too deep.
Some of my strengths are identifying market trends, research and spotting winning products/services so that's where I like to spend most of my efforts. It's still very important to keep up with what's transpiring in the other field of analysis. That would be like fighting with one arm behind your back.
In summary, if you are great with numbers, TA might be favorable towards your skillset. If you are good at market research and enjoy reading, FA could be more suitable for you.
Agree, they both work, just depends on your personality, but using both in some type of combination is better than just one solely one of them.
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