How do you analyze?<\/strong><\/h2>\n\n\n\nThe ease of analyzing is very important. You\u2019ll want to spend some time understanding what is even going on before starting to trade. But, you won\u2019t need to spend too much time because, by the time you reach some sort of conclusion, the situation may change ten times over. It\u2019s especially true for the Technical analysis.<\/p>\n\n\n\n
The Fundamental Type allows more room for thought, though, both in terms of speculating and having enough time to reach a conclusion. <\/p>\n\n\n\n
But how do you even analyze using either type? It\u2019s not like it is common knowledge how to combine demand and volume to understand the trend. Well, the comparison of Fundamental Analysis vs Technical Analysis depends largely on you.<\/p>\n\n\n\n
Fundamental analysis <\/em>is made through a combination of raw numbers (such as company capitalization and trading history) and your own conclusions. From this, you can see the condition of the company, compare it to the others and see from subjective parameters whether the security is going up or down.<\/p>\n\n\n\nIt\u2019s not that hard if you make some effort. It\u2019s true that you can simply look at a few facts, see the general consensus and leave the rest to your intuition. That\u2019s very much realistic. But if you want to spend some time reading articles, projections, going through more numerical data, then you\u2019ll be able to compile it all into a single conclusion.<\/p>\n\n\n\n
Technical analysis<\/em> is more objective, although you can still interpret the data however you please. It\u2019s just that most analytical tricks are well-known and documented, so you\u2019ll have a lot of advice in this regard. But just like the Fundamental Analysis, you can make little effort or spend more time studying the security properly.<\/p>\n\n\n\nYou can simply glance at the supply, demand, volume, general trend direction, and finish there. For many people, that\u2019s all you need. But others employ the help from countless indicators, look at the patterns, monitor the charts endlessly, and go through historical data to see familiar turns.<\/p>\n\n\n\n
A lot of these analytical strategies are in open access. Many can be tested, but some can\u2019t. In fact, a good portion of these strategies is a complete joke. They don\u2019t work, which doesn\u2019t stop people from creating new ones and then failing to deliver the results again.<\/p>\n\n\n\n