In today's lesson, we will ** the difference between technical analysis and fundamental analysis. I'll guide you through which method might be more appropriate for beginners and explain the main differences.
The trading world is divided into two main camps: one is fundamental analysis and the other is technical analysis. A common question for beginners is which direction to start learning. I recommend starting with technical analysis, which is a more straightforward approach for the following reasons:
First of all, most of the current trading takes place in the foreign exchange margin market, which is a leverage-based environment that is usually biased towards ** trading. At the heart of trading is the determination of location, which is crucial. Technical analysis has a significant advantage in terms of positioning, while fundamental analysis, while it has its strengths in long-term trends, it is not enough in precise positioning. Therefore, if the goal is to make the best trade, paying attention to the determination of the position, then technical analysis is an indispensable tool.
Secondly, technical analysis is relatively less difficult to learn than fundamental analysis. Decisions in technical analysis are based on charts, usually charts and some additional technical indicators. As long as you have the skills to read charts, you will be able to use technical analysis effectively. Fundamental analysis, on the other hand, requires a deep understanding of economic theory, which is undoubtedly more difficult to learn for most people.
To sum up, I recommend that novices start with technical analysis, as it is relatively easy to get started and is especially suitable for the needs of trading. Of course, fundamental analysis also has its value, but it requires more knowledge of macroeconomics and may not be suitable for traders who are just starting to learn.
If you have any questions or insights on this topic, please leave a message to discuss. Through today's lesson, I hope you can better understand the difference between technical and fundamental, and make an informed choice for your own trading learning path.