Fundamental Analysis or Technical Analysis?

Part 2 of sharing! Likewise, I hope to provide more insights to new investors and for seasoned investors, my terminologies used might not be the same as you used based on how I've learnt/rephrased them to layman terms

Often than not if you're new to the investment, you might hear people talking about the fundamental analysis or technical analysis they use to determine whether to buy or sell a stock

Usually refers to things like the economy (e.g. US Fed Rate cut, unemployment numbers) and can also refer to the reports by companies such as (Earnings Per Share (EPS), dividends, profit, loss, revenueu, guidance).

Refers to the charts and patterns from the candlesticks, indicators, support/resistance

Honestly I feel like its your OWN BELIEF SYSTEM. While people might critic technical analysis and say that charts/patterns don't determine price action, I on the other hand firmly believe in technical analysis. While technical analysis might seem like random numbers/lines on the chart that people use to justify on how price should react. My justification is that Technical Analysis actually shows market sentiment and is a measure of trader psychology - of which, I personally believe is immeasurable at the moment, and that every candlestick is trying to tell a story.

The best kind of trader/investors, in my personal belief, would be for those who COMBINE both fundamentals and technical analysis to invest in a certain stock.

I once saw an interview from a trader of a top bank, I can't exactly remember his name or where he was from but he said this (not an exact quote):

"I use Fundamentals to determine the direction, I use Technicals to determine my entry"

I hope this sharing has made you more interested in fundamental/technical analysis and perhaps spur you to read up more on your end, have a great day and I'll see you at the next sharing!