Fundamental Analysis vs. Technical Analysis - What Works Better?

Fundamental and technical analysis are strategic methods employed by traders worldwide to study currency market trends and make trades that bring in good profits. For long, the battle has raged between two factions - one that claims technical analysis to be superior and one that says the fundamental analysis is the best. Some even feel that both are equal! Does it boil down to preference or is there truly a superior method for performing analysis?
 

Fundamental Analysis:
 

Fundamental Analysis vs Technical Analysis in Forex Trading

Fundamental analysis is essentially the study of Forex trading markets powered by analyzing social, political and economic factors. These factors play a huge role in currency trading. The prices of currencies see shifts every time one or all of these fields are disrupted. If a company has a healthy economy, the currency value will be high, and vice versa. A good economy brings in good supply-demand ratios, which directly impact currency values. This is why you will find that the currencies of several countries go less-traded. There is seldom a hike in their value, making them unviable as a trading option. 

With fundamental analysis as your Forex trading strategy, you will aim at speculating how a market will function at a given point of time, with economic, social and political factors being the driving force. 
 

Technical Analysis:
 

Technical analysis, on the other hand, is the study of how a currency has behaved in the past, and how it might behave in the future. By employing technical indicators, analytical tools and using studies, traders aim to find profitable events in current markets. Technical analysis is a Forex trading strategy that ignores all of the fundamental factors and focuses solely on historic results.
 

Which One Is The Best?
 

Depending on how you want to approach Forex trading in Thailand - either might work for you! Traders have seen consistent success with both these methods. It ultimately boils down to personal taste. Demo practice and see the wonders for yourself! 
 

If you're getting started with Forex trading in Thailand - worry not, both means will help you see positive results in your trades. It comes down to implementation and how keenly you watch the markets! With many a trend available for the taking, you can make your way to the top swiftly! Sign up with WesternFX today, and avail from our range of stellar Forex trading strategies. We will guide you through strategizing and make sure your methods bring in wins! Call us now to know more.