Technical analysis vs. fundamental analysis – which is better
In the world of stock analysis, fundamental and technical analysis exist on completely opposite sides of the spectrum. Profits, costs, assets and liabilities are all important characteristics for fundamental analysts, while technical analysts couldn’t care less about these numbers and focus only on price and volume. Which strategy works best is always debated, and many volumes of textbooks have been written on both these approaches. A technical analyst would criticize Fundamental analysis as they consider it useless because company reports are often cooked and they only come out once a quarter. Statistics from government agencies usually have a huge lag time, sometimes months after the current time period. A technical analyst would rather just look at market information (price and volume). This is where true information is found because the institutional buyers have a better insider track record and will buy/sell in huge volumes based on their insider knowledge. Therefore, a retail investor should buy things that go up and sell things that go down. A fundamental analyst would say that technical analysis ignores all the valuable information about earnings, dividends, growth rates and other information that any CEO would use to assess the value of a company. The bottom line is that you should do some reading yourself and find out which system you feel most comfortable with. – Fundamental Analysis – Fundamental analysis looks at factors such as balance sheets, income statements, profit ratios, the economy, etc. – Technical Analysis – Focuses primarily on the stock price and the volume of stock purchases and sales. – Technical indicators/chart patterns – A list of chart patterns that professional WallStreet traders use daily. – Chart Analysis – Focuses on the same factors as a technical analyst.
About the Vikingen
With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
