There has been many discussion about which strategy is better, fundamental analysis or tehcnical analysis. Technical aproach has been reinforced by trading software which can be used to predict price based on price simulation, where it uses models for each market without regard the underlying economy or fundamental which driven the market. Several recently developed programs help boil down the maze of economic and fundamental information into a form useful by traders who do not have formal training in economics. These programs help track the impact that economic indicators have on price in various markets. Such software gives traders an easy-to-understand link between fundamental data and price. The technical analysis is easier to use than fundamental. But when the market crash on October 1987, traders started to pay attention on the fundamentals, like unemployement figures, trade deficit, unemployment, and commodity supply/demand data . With the combination of two strategy, we will have quite a powerfull strategy.

Technical analysis tells us when the price will likely move, while fundamental analysis tells us what stock is good. By combining the two strategy, we can have a good stock which the price will likely move. A trading plan is needed to win the battle win other investor. You need to know how to choose a good
stock, and how to choose a stock which will move in favor of us shortly.

Tags: Fundamental Analysis, stock software, Stock Strategy, Technical Analysis