TRADING COURSE (from scratch)
LESSON 3
📈 Technical Analysis VS Fundamental Analysis - Which One to Choose?
Welcome to the third class! Today we are going to resolve one of the major doubts of every beginner: How do I analyze the market? There are two main schools, and knowing both is key.
🔍 TECHNICAL ANALYSIS (TA)
Question: "WHAT is the price doing?"
· It focuses solely on charts and price movement.
· It uses tools like candles, trends, supports, and resistances.
· Ideal for short and medium-term operations (hours, days, weeks).
· Philosophy: "The price discounts everything" (all information is already reflected in the chart).
📰 FUNDAMENTAL ANALYSIS (FA)
Question: "WHY does the price move?"
· It studies the real value of an asset.
· Analyzes financial statements, news, economic sectors, and macro events (like central bank decisions).
· Ideal for long-term investments (months, years).
· Philosophy: "The market can undervalue or overvalue an asset in the short term".
🤔 Which is better?
It depends on your style!
· If you like charts, quick action, and precision → TA.
· If you are passionate about economics, companies, and patience → FA.
· More comprehensive traders use both to make more informed decisions.
✅ Tip of the day: As a beginner, start with Technical Analysis. It allows you to practice with clearer and more visual rules in shorter timeframes.
👇 Are you more of a charts (TA) person or news and balance sheets (FA)? Share your intuition with us!
⏭️ Next class: Your first TA tool - The famous JAPANESE CANDLES!
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