Fundamental analysis vs Technical analysis

[MurAtt]

Still not corrected brother ...
Contradictory statements - marked in Red-Red pair and Green-Green pair!!!
Need more rest

FA and TA are like 2 sides of a coin. Ask a FA for a entry point. Ask a TA about the long term prospects of the company.

It's not what about which is better. A hammer and a screwdriver are both useful but what is it you want to do with it?

Fundamental analysis will tell you about whether you should invest in the comany or not. Risky companies can be identified from the financial statements. Then use TA to identify a good entry point and determine a SL/exit strategy.

Fundamental analysis is a lot harder to learn though. You need to be well versed with finance and accounting. I found TA a lot easier to learn by reading but for FA you'll need someone to assist you with the background info that you are supposed to know.

 

[jagankris]

FA is not reliable for
1.Companies balance sheet's are manipulated.
2.Fundamental News is a lagging indicator and is available to the insider/strong hands well before.
3.False FA news is propagated.

FA can be used for sector analysis.

FA can be used only for long term investment and is more suitable for buy and hold strategy.Which is almost useless in today's market conditions in my IMO.

TA believes that price carries all the information.
TA is for gauging the supply and demand and hence is more reliable.
TA fails in case of turn arounds very rarely.

IMO FA can be used for the confirmation of TA but the vice versa is not true.

When there is a price divergence between FA and TA.
TA is always reliable.

Combining both one can get the best results.

But if the question is strictly FA or TA then my vote is for TA.

 

[vinodkiyer]

price action of Nifty spot tells u all there is to know

 

[rbaiga2020]

if you find a good stock after analysing fundamental,when to buy and exist ,use tech.analysis
rb

 

[columbus]

For Day traders Technical Analysis is important and for Positional traders
Fundamental Analysis is important.

 

[Ritchie43BD]

actually we cant choose one..becoz both have their own importance.....we can predict the market by fundamenteal as well as technical....

 

[d_hasta]

Though I have voted for technical analysis, the rightful or successful trading cannot be achieved by anyone analysis alone. they are interdependent and have to be used in co-relation. i mean based only on technical analysis, you cannot always predict the market movement. though it wud say for example the market will see a upward trend, the release of some important fundamental news may lead to sudden markets crashing. thus, they have to be used together, for amazing trading results.


if somebody has a differing point of view, do mention it. would like to know your views

 

[rosstaylor]

actually we cant choose one..becoz both have their own importance.....we can predict the market by fundamenteal as well as technical....

yes you are right both are most important...Fundamental analysis to determine future growth rates for buying high priced growth stocks. Technical analysis in finance, technical analysis is also called security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume.

 

[prst]

for positional, one can go for FA .
and confirm the same based on TA to get the correct entry price.

 

[Paul Cruza]

why Fundamental analysis is not better then Technical analysis?
What is the advantages an dis-advantages in Fundamental analysis
What is the advantages an dis-advantages in technical analysis

any one suggest for Fundamental analysis sofware or website


welcome for comments

Fundamental analysis provide the most significant information to traders. Economic indicators illustrate the detail of a country's economic performance whether it has improved or declined. Technical analysis is done based on previous and current information.
Technical analysis focuses only on charts and do not take other precise factors into consideration. A good trading system must make use of both technical and fundamental analysis.:lol: