forex trading: fundamental VS technical analysis
By emma90
@emma90 (530)
Indonesia
May 22, 2012 1:27pm CST
Some people talk about what kinds of analysis do you use in forex trading?
some people say they use technical, others say they use fundamental, and others say they use both of that analysis (combine).
and then some people ask which one better for read the market?
The advantages In technical analysis are you make decission base on your analysis, and it's real, and you have assumption that the price that you see at the chart has reflection all of information about market.Technical analysis has support and resisteance, price history, and only focus with the price
The disadvantages for this analysis is technical analysis is bias, technical analysis opened so many intepretation and it will be make you confuse to make decission, some people saya that technical analysis is late and never has certantity.
Fundamental analysis can be use to answet "how". Honestly, I realy understand enoughthis analysis. I'm low read the market when news appear. I know about the theory of this analysis, but I can't apply when trading.
So, lets discuss about technical analysis and fundamental analysis. And let's share the advantages and disadvantages.
good day,,,
1 response
@magtibaygom (4858)
• Philippines
22 May 12
Since forex trading thrives on frequent ups and downs of the market, then it is far different from stock trading and investing. With more stability, investing on stocks can be won by fundamental analysis, like examining the health of the company you are investing at and hope for share of the company's profits. But in forex, you don't have that. It's more of a "gambling", always timing the market, so since it behaves like that, then it would be better to just use technical analysis.
