Technical Vs. Fundamental Analysis – What is the best way to use?

I can’t believe that I am writing this post about Technical Analysis and Fundamental Analysis. Through out the years of my investing journey, I am more of a longterm investor, focuses more on fundamental side and not on the technical side. But things change and I want to learn how technical analysis can help improved the growth of blue chip stocks that I am holding. (Know when to buy and when to sell it).

I don’t like numbers but I am intrigue with how these candle sticks chart work. So if you’re like me, a newbie in Technical Analysis and don’t know where to start. You can follow my blog and let us start our journey in learning technical analysis.

So what is the difference between Fundamental Analysis and Technical Analysis?

Panoorin natin etong video tungkol sa dalawang school na eto. Salamat sa internet, nakakapag-aral tayo ng libre.

Fundamental Analysis

It focuses more on economic factors known as fundamentals.

Eto ang sabi ng Investopedia:

In a nutshell, fundamental analysis aims to determine intrinsic value by looking at the strength of the business, a financial analysis and the operating environment including macroeconomic events.

Sa Fundamental Analysis, tinitignan or binabasa nila ang Revenue, Earnings Per Share (EPS), P/E Ratio (Price to earnings ratio), Sector Fundamentals and macroeconomic climate (Where are we in the economic cycle?)

Technical Analysis

It focuses on price movements of a security or stocks.

Eto naman ang sabi ng Investopedia about this school:

Analyzes past market performance by looking at the chart activity of price movements, volume, moving averages and the statistics of various outcomes. Fundamental analysis assumes the efficient market theory holds in the long run and attempts to take advantage of inefficiencies in the short run.

Importante kay Technical Analysts ang Price Trends, Volume, Moving Averages and Indicators.

What is better?

Both of them have advantages and according to history, fundamental analysis always win and have higher growth in the long term. But I think this have change big time because of the help of computer softwares. Most analysts now uses sophisticated charts that can spot if a security is about to go bullish or bearish.

For me, gusto kong pag-aralan ang Technical Analysis to help me improved my trading skills, I am still a longterm investor and I want to know when is the right time to buy a stocks or it’s time to sell it.

Hopefully my natutunan kayo sa posts na eto. Please share this posts sa inyong Facebook or Twitter account.

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