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Why technical analysis is different from fundamental analysis.

Sometimes when we enter in the market and try to learn about how to take profitable trades in the stock market. The first thing that comes in our mind is "how to start" ? Well thanks to the world of internet where the knowledge is free of cost.

All you need is just go to Google and type "how to trade in the stock market"? Then you will get to know about a lot of strategies and I am pretty sure that you will also learn about technical analysis and fundamental analysis while searching your question.

Now, if I assume you are a beginner and if you are hearing these two types of analysis then you might be thinking what are the differences between these two? and I am sure you have also seen a lot of debate over the two types of analysis. Some analyst will prefer fundamental analysis and while others technical analysis.

Now your mind is confused how to take trades and what analysis should you use in your trading career but before we proceed let me tell you a quick introduction of the both.

Fundamental analysis

Fundamental analysis is nothing but to check the financial statements of a company and predict the financial growth and the future of the company you are going to take trades. In simple terms it  checks the financial health of the company. So, on the basis of these financial statements, a fundamental analyst will take his call to take trade or not. A fundamental analyst will never give his attention towards the market noise such as news, political factors etc

Technical analysis

While on the other hand if you talk about the technical analysis. Here, the technical analyst will only check price action of the given company or stock. He will not pay attention towards any of the financial statements of a company also he doesn't care if a company is making loss or profits. He will only open his computer and look at the charts and say, oh yes! this is the right stock and I will take a call to trade in this stock and on the basis of the charts he will buy or sell stock.

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