Which is better: technical or fundamental analysis

In short: For short-term trading the main tool is usually technical analysis: it gives the entry, stop and target. Fundamental analysis is useful as background — to understand the broader direction and to avoid entering right before big news.

What works when

Over minutes and hours, price is driven by participants' orders, and that is visible on the chart. Over months and years, by the economy and business. The shorter the trade, the bigger the role of technical analysis.

A sensible approach for beginners

Learn technical analysis as the base, and take from fundamentals the news calendar and an understanding of key events: rate decisions and inflation data.

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Trading on financial markets carries a risk of losing money. This material is educational and is not investment advice.

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