Traders can be categorised in 2 main methodologies – Fundamental Analysis and Technical Analysis.

Having an awareness of the Strengths and Challenges of each will prepare you to trade to best suit your skillset, your resources and your Trading Goals.

Fundamental Analysis

Trading based upon Market Conditions.

Analysing the impact of internal and external Socio Economic Factors, including Employment, Balance of Trade, Politics, to name a few.

To trade Fundamental Analysis, you will need to have instant access to fast and accurate information about these factors and their effects on each of the shares,  CFD’s, commodities or currencies that you trade.

Because of the level of information required, Fundamental Analysis is generally the playground of the “Big Kids” – Banks, Fund Managers

Technical Analysis

Trading based upon market strengths and weaknesses and levels of Support and Resistance in Indicator Charts.

Technical Analysts use a set of charts with different indicators that give a historical and current time record of trades – factors that can be analysed are points of Support (potential barrier to downward movement) or Resistance (potential barrier to upward movement) to price movement.

Technical Analysis is the preference of many private traders as; once you have an education, the information is relatively uncomplicated, to analyse to find strong potential trade entry and exit points.

Because these charts are standard across currency pairs, you can transition from one share to another, one CFD to another, one Mineral to another or one currency pair to another without needing to know fundamental factors for each product.