Fundamental vs technical analysis - what more important?

[Johnno26]

Biggie Smalls says ‘it’s all about that paper’, but for George Soros its it’s all about those pips!

My question is what most important to consider, fundamental or technical analysis?

 

[nahiyar]

I will not say any one of these is perfect analysis. Both had their own advantages and disadvantages, Depending on your style and practice of trading you have to choose which shows you good results. I must say you should see both of the analysis . In different timings do experience with them . Knowing fundamental is necessary , no one can be successful just sticking on one type of analysis for trading.

 

[Johnno26]

Great reply @nahiyar

I think it is very much a ying and yang. But think Fundamental Analysis is extremely difficult to master. Understanding what is priced in will always be a challenge.

What do you do to better understand fundamentals and understand what is priced in?

 

[dianajs]

In my opinion both are important. Traders tend to prefer one or the other, but that has no impact on their importance.

 

[nahiyar]

Great reply @nahiyar

I think it is very much a ying and yang. But think Fundamental Analysis is extremely difficult to master. Understanding what is priced in will always be a challenge.

What do you do to better understand fundamentals and understand what is priced in?

Yes what is best for your understanding it will work good for you . If you are easy with any one of them or use blend of two that is excellent way to face market . Market will never tell you what tool should be used or not. It is your own experience that can tell on different situations what analysis will work here.

 

[dianajs]

I think both types of analysis can be useful, it depends on the trader's preference which one will pick. What is better for one is not the same as what is better for another person.

 

[dianajs]

Another trader would tell you that technical analysis is more important, I think what type of analysis a trader picks is a very subjective choice that is, however, equally valid for everyone who makes it.

 

[Quinuiacl12]

I think both, fundamental and technical analysis are important for a trader. Fundamental analysis are more important as far as I think as they are the basics. A person with strong basic knowledge and practice is a good trader. Am I right?

 

[dianajs]

Do you use fundamental analysis more then? Or your personal preference leans more to technical analysis?

 

[Anthony23]

Fundamental analysis is most often used when determining the quality of long-term investments in a wide array of securities and markets, while technical analysis is used more in the review of short-term investment decisions such as active trading of stocks. So, it depends on your business