In investing and trading, we often hear debates on the merits of fundamental vs. technical analysis. Both aim to improve our probability of a profit. Both methods have their usefulness when correctly applied.
They are not the same by any stretch, so it’s not a debate over one “apple” vs. another. It’s a comparison of two completely different approaches, and the comparison is more of the “apples vs. oranges” variety.
Trading vs. Investing
Before we get into the fundamental vs technical analysis, there are important distinctions to be made between investors and traders.
Investors are more long-term growth-oriented, while traders focus on immediate income or aggressive account growth. Market participants tend to be focused on one approach or the other. But many are a mix of both.
Investing and trading are different worlds, and it can be challenging to master either domain, much less both. The key is to know what style is best for your timeframe, to what extent, and why. Continue reading "Fundamental Vs. Technical Analysis - What's Your Style?"
