Ultima MarketsTrading Classroom: Big Brother Fundamentals, Don't Say Technical Analysis Second Brother,...

The fundamental analysis genre disdains technical analysis and has a low entry threshold. Even individuals who have read a book seem to be able to analyze the market in a coherent manner. The technical analysis school believes that fundamental analysis is useless and that good and bad news can be interpreted from the market. However, in actual transactions, technical analysis and fundamental analysis complement each other.

Fundamental analysis

In the stock market, the goal of fundamental analysis is to determine the fair value of a company by evaluating various aspects of its business, industries, the entire market, and the domestic and global environment. andforeign exchangeThe market focuses on the monetary policies, economic development prospects, and political considerations of corresponding sovereign countries.

The introduction to fundamental analysis is actually not difficult. Read more financial weekly or well-known scholars' viewpoints, and gradually form your own knowledge framework. If you really can't find it, just go to the official website of the Federal Reserve, the European Central Bank, or the Bank for International Settlements and other paper columns. Only with enough input can there be output.

(Paper section of the International Settlement Bank)

Fundamental analysis ultimately yields a value that is compared to the current subject matter. Through this comparison, investors can determine whether it is worth purchasing the current subject matter. But ultimately, the market is not a single person's market, it is a manifestation of emotional gathering and a collision of bulls and bears' views on the future.

A news release can indeed be interpreted positively and negatively, and the key lies in the balance of strengths and weaknesses in the market trading sentiment, which can completely dominate. Here, technical analysis is needed to help traders observe who is the winner in the end.

technical analysis

Technical analysis is a method of evaluating and predicting the future trend of market trends through historical market trends and statistical data.

Relatively simple and easy to understand technical analysis can help investors better understand market trends. However, it is usually most suitable for short-term and medium-term investment decisions, and for long-term investments, fundamental analysis may be more important.

Fundamental analysis is usually used to determine the long-term investment quality of various targets and markets, while technical analysis is more commonly used to review short-term investment decisions, such as who is more dominant in the current target's long short power. Because technical analysis emphasizes market psychology and emotions, it helps to capture market sentiment.

The best method is usually to combine technical analysis with other analytical methods to develop a comprehensive investment strategy. By gaining a deeper understanding of fundamentals and technical analysis, long-term investors can better understand the market and make wiser investment decisions to achieve their financial goals.

No matter which method you choose, you need to carefully manage risks and remember that investing is a long-term decision that requires persistent effort and patience. Ultimately, successful long-term investments depend on wise choices and firm execution.

Disclaimers

The comments, news, research, analysis, pricing, and other information contained in this article can only be considered as general market information and are provided solely to assist readers in understanding the market situation and do not constitute investment advice.UltimaMarketsReasonable measures have been taken to ensure the accuracy of the data, but the accuracy of the data cannot be guaranteed and can be changed at any time without notice.UltimaMarketsWe will not be responsible for any losses or losses (including but not limited to any loss of profits) that may arise from the direct or indirect use or reliance on such information.