Understanding Fundamental Vs. Technical Analysis



Next video:
Loading the player...

The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental and technical analysis. Learn the core differences in these strategies and how to use each analysis effectively.

Related Articles
  1. Trading Strategies

    Technical Analysis: Introduction

    By Cory Janssen, Chad Langager and Casey MurphyThe methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis. ...
  2. Trading Strategies

    Fundamental and Technical Analysis for Pairs Trading

    Pairs traders employ either fundamental or technical analysis, or a combination of the two, to make decisions regarding which instruments to pair, and when to get in and out of trades. Many pairs ...
  3. Markets

    Understanding Profit Margin

    Learn a primary method investors use to analyze a company's profitability.
  4. Markets

    What Is Fundamental Analysis?

    Fundamental analysis is one of the basic ways to evaluate stocks. Find out what it is and how it can work for you.
  5. Forex Education

    Forex Trading Rules: Trigger Fundamentally, Enter and Exit Technically

    by Boris Schlossberg and Kathy LienShould you trade based upon fundamentals or technicals? This is the $64 million question that traders have debated for decades and will probably continue to ...
  6. Options & Futures

    Stock-Picking Strategies: Technical Analysis

    Technical analysis is the polar opposite of fundamental analysis, which is the basis of every method explored so far in this tutorial. Technical analysts, or technicians, select stocks by analyzing ...
  7. Investing Basics

    What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  8. Trading Systems & Software

    Use Price Action Trading Strategy for Results

    Bored by the fixed rules of technical and fundamental analysis? Price action trading allows you to customize your own trading strategy.
  9. Active Trading

    Blending Technical And Fundamental Analysis

    Find out how you can combine the best of both strategies to better understand the markets.
  10. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center