TECHNICAL ANALYSIS VS FUNDAMENTAL ANALYSIS: The Upsides and Downsides
Yet before selecting which of the two to go with, it’s highly essential to know and understand the Upsides and Downsides of the them as well.
Upsides:
Technical Analysis:
- Provides clear entry and exit signals for traders.
- Useful for short-term trading strategies.
Fundamental Analysis:
- Helps investors identify strong companies or projects with immense growth potential.
- Provides a long-term perspective.
Downsides:
Technical Analysis:
- Can be subjective, as interpretations of charts and indicators vary.
- May not consider underlying factors affecting a security.
Fundamental Analysis:
- Requires in-depth research and analysis, which can be time-consuming.
- May not provide immediate trading signals.
