There are many examples of successful traders using both fundamental and technical analysis. Which one you should choose is dependent on what you’ll be most comfortable with.
If you choose fundamental analysis exclusively, you have to follow current breaking news, indicators, as well as political trends to make money. Using fundamental analysis for trading calls requires deep understanding how the markets work and how the markets will react to news.
You can also analyze fundamental information with econometric tools to make trading calls.
If you choose technical analysis, you will have to learn a technical analysis trading style that suits you best. There are hundreds of technical trading styles to choose from with some using chart patters, others mathematical formulas, for example.
Most of the technical analysis rules have the benefit of being systematical, making testing a strategy on historical data comparably easy.
Saturday, January 26, 2008
Basic Strategies
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