WHAT IS MORE IMPORTANT, TECHNICAL ANALYSIS OR FUNDAMENTAL ANALYSIS ?

Well … This is hard to answer because it depends what kind of a trader you are.

I am both short time trader, meaning i like to trade every day, but i also like to make long term investments buying shares and investing in companies.

So i use the fundamental analysis to base my long term bias on weather or not to continue holding my positions or if i should exit earlier based on what is going on.

I also use fundamental analysis to keep an eye out on news that are going to bereleased 1 – 2 hours ahead of my trading, because i want to make sure that i am not entering positions 1 hour before and 1 hour after news events.

High impact news are going to impact the present market the most, and low impact news will take more time to take affects in the markets, usually days to weeks.

So i make sure whenever there are high impacts news, i will stay out from the markets 1 hour before ans 1 hour after they are released.

If i have open position , i will close then weather they are in profit or in a loss.

That is why it is crucial that you time your trading perfectly.

So to answer the question, i belive technical analysis is the most effective way of trading for short term traders, because as you have understood by now, the market is run by high frequency computers, running by programmed algorithms that make up for the movements we see on our charts.

Price action is the most valuable in our trading because it tells us human behavior, and that is exactly what fundamentals traders try to predict, how are gumans going to react to this ? will more people buy or sell ? Are people having a bullish bias or berish bias ?

To me, this is all summoned up by looking at orice action, but it is crucial that you do your home work and read fundamental analysis because it will increase your confidence when you are trading live in the markets building your confluences when you go through all the different time frames.