When I first started trading,
I was overwhelmed with all the discussions on technical analysis. In fact, my
first introduction to forex trading was a book I read on correlations and how
certain currencies move in rhythm with other currencies. It seemed like there
were so many theories based on technical analysis that there was no point in
studying anything else.
After reading up and watching the markets for awhile, I came to the conclusion that technical analysis did matter, but only on a short scale. When trading for the long term, based on months rather than days, it was better to rely on fundamental analysis. Technical analysis is great and it's fun to learn and experiment with, but to truly trade something you have to understand what it is. Fundamental analysis is all about that.
After reading up and watching the markets for awhile, I came to the conclusion that technical analysis did matter, but only on a short scale. When trading for the long term, based on months rather than days, it was better to rely on fundamental analysis. Technical analysis is great and it's fun to learn and experiment with, but to truly trade something you have to understand what it is. Fundamental analysis is all about that.
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