Thread by @VaidaBogdan

#Technical vs #fundamental analysis in #trading (a #thread)

Technical traders think that the fundamentals are incorporated in the price. E.g. when a chain will launch an exchange on it, the price already reflects that information as people will buy based on news as soon as they get them.

Fundamental traders think that technicals are not that relevant in the longer term. When you know that investors have a distribution coming and they'll be able to sell a lot of tokens at a very low price, you can trade based on that.

The truth? Somewhere in the middle, as they are both right. What does this mean?

If you're a technical trader, you'll be mostly right (when trading against all the other technical traders) but expect #unexpected behaviour that is actually explained fundamentally.

By fundamentally I mean also incoming news like token releases which is news based trading but also fundamental trading (because they are specified in the tokenomics and the releases are locked in the token contracts).

If you're a fundamental trader expect the price to fluctuate technically when there's no incoming news. Also, you may buy at a higher price if you haven't done the technical analysis right.

Sometimes, whales will also push the price in a direction unforeseen by the technicals and the fundamentals.

Here's an example based on the launch of @MaiarExchange by @getMaiar followed by their launchpad where they are going to launch @holoride .

The text box you see at 309$ was me coming late to the party. After a 52% increase ... I might say the party was just starting.

A technical #trader might look at this and say: after a period of #accumulation, the price has gone...
And it would be correct.

But actually...

It was a fundamental trade. What happed was that I was following the development of @MaiarExchange and knew that when they would launch they would distribute free $MEX tokens to the $EGLD stakers. Not only that, but I saw a 4000%+ APY MEX/EGLD LP on launch. Plus...

Plus their @holoride launch. A crypto project with #partners like @Audi , @Porsche , @schellgames . Their CEO, @Nils_Wollny was Head of Digital Business at @AudiOfficial in Germany.
Oh, and did I say that you needed $EGLD to buy it?

I've mentioned this in a private group I'm in together with @CryptoMellany, @C_ompounding, @inkdBTC, @Paskii_, @Mindset_BTC and a secret VIP. #Learning is better with #friends. Thank you for all support guys and gal' :)

So I'm up 52% because of #fundamentals and a fine-tuned #technical entry.
Could have been better? Of course.
But the results are still great.
So how should you trade? #technically or #fundamentally?

For #investing the fundamentals rule and those are usually more important than the technicals. You can use technical analysis for fine-tuning the entry and that's about it.

For trading, technical by default. It's working statistically and if you're good enough you can have great results just by technical trading (even if you lose some trades because of some information taken from the fundamentals).

But when you want to have great results, my recommendation is to follow a the projects of the tokens you are trading. Combine the fundamental information into your trading, know the vesting of the investors, know the roadmap and take that into account when trading.

That is the path of a trading master.
Happy trading everyone! :)