For many years, there has been a dispute between traders about what is initially and, more important, technical or fundamental analysis. This debate is like a discussion between idealists and materialists about what comes first. Sooner or later, every newcomer to the Forex market is faced with this question. Seasoned traders, both successful and less successful, argue that technical analysis is much simpler to learn than fundamental.
There is objective evidence of this in the statements of experienced traders. For highly effective use of fundamental analysis, a trader will need to spend a lot of time and effort to obtain economic knowledge that can only be obtained in economic schools or higher educational institutions.
There are very few books on fundamental analysis. If there is information, then it is very scarce and affects only general concepts. Therefore, to study this type of analysis, traders have to read special books on macroeconomics and economic theory. This is not an easy task since the materials must be applied to the foreign exchange market by oneself.
Due to these difficulties, many people prefer technical analysis to fundamental analysis. There are many books on technical analysis, tools, including a large number of indicators, can also be found in the public domain. And technical analysis itself is much easier to understand than fundamental.
Traders who are engaged in the fundamental analysis are forced to constantly monitor a variety of political and economic news, as well as various events that can affect the price change on a particular currency pair, i.e., actually follow the life of two, and if the currency is the Euro, then several countries. Absent from fundamental analysis for a few days, you can miss some significant events that can significantly affect the currency’s behavior.
The Bottomline
Let’s summarize. It is ideal for every trader to master both types of analysis, but this is not always possible. Therefore, if you prefer Fundamental Analysis, then you need to learn at least the basics of technical analysis to open an order at the right time. If you prefer Technical Analysis, then you also need to know a thing or two about fundamental analysis, at least when the news is released, since at this time the market may behave unpredictably for you.
For a trader taking the first steps in the Forex market, it is preferable to start learning technical analysis. This is an easier task so that it will be most justified for a start, and you will not waste your time and learn to predict market behavior with the least effort and time.
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