As new stocks traders/stocks investors, you may often hear many arguments whether the Technical Analysis (TA) or Fundamental Analysis (FA) is the most important analysis tool in stocks trading/stocks investing. Some say that the TA is the most important while the others say that the FA is the one. So, the big question in here is:
Which one is the most important for stocks trader/stocks investor exactly? Technical Analysis or Fundamental Analysis?
You may also hear that the Technical Analysis is the best tool for stocks trader while the Fundamental Analysis is the best tool for stocks investors. However, I am always wondering whether it is true or not. Honestly, before, I also believed that the Technical Analysis is only for the Traders while the Fundamental Analysis is for the Investors.
Yeah, I really believed in that until I started to do more serious learning and research in my stocks analysis venture. I have found that both of them could be combined and become a very great tool for both of Stocks Traders as well as Stocks Investor. The combination can answer the biggest questions of the Stocks Traders/Investors which are:
- Which Stocks are the best to buy?
- Which Stocks are the best to sell?
- When is the right time to buy the stocks?
- When is the right time to sell the stocks?
The Fundamental Analysis is the best tool to answer the question number one and two while the Technical Analysis is the best tool to answer the question number two. So, you should be already able to see what can be achieved by combining both of the Fundamental Analysis and Technical Analysis. In short, this combination can tells us how to choose the best stocks as well as tells us the best time to buy or sell them.
As for your information. Fundamental Analysis is a way to analyze the stocks based on the companies real condition such as the sectoral condition, macro economy condition, micro economy condition, the financial performance, etc. In other hands, Technical Analysis is a way to analyze the stocks price movement at certain time. So, obviously, by combining both of them, we will be able to choose the best stocks available in the right time – which is surely a big help for both of Traders and Investors.
Have a profitable stocks trading everyone!