Technical vs Fundamental Analysis

🧠 Why it matters

Two big approaches to deciding what to buy. FUNDAMENTAL ANALYSIS asks 'what is this actually WORTH?' — digging into a company's earnings, debt, growth, and management to judge whether the price is a bargain or a rip-off. It's the tool of long-term investors (think Warren Buffett). TECHNICAL ANALYSIS ignores the business entirely and studies the PRICE CHART — trends, patterns, volume, support and resistance — to judge where the price might go next. It works on anything liquid enough to chart: stocks, crypto, forex. Neither is 'right': fundamentals tell you WHAT to buy; technicals help time WHEN. Plenty of pros blend both.

🌍 In the real world

💡 A fundamental investor and a chart trader can look at the same stock and both be right — on their own timeframe. One buys a cheap business to hold for years; the other rides a three-day breakout. Trouble starts when you use a long-term tool for a short-term trade, or the reverse.

📌 Takeaways

• Fundamental analysis = the business's true worth (earnings, debt, growth)
• Technical analysis = the price chart (trends, patterns, volume)
• Fundamentals pick WHAT; technicals help time WHEN — many blend both

✅ Test yourself