Some traders describe themselves as purely technical or fundamental traders.  Only looking at charts or the balance sheet to help them decide how to manage their portfolio.  However, combining the two types of research will give you even more insight and knowledge and can help you make more informed decisions. 

Often times fundamental analysis is used to help decide WHAT companies you want to invest in.  Is the company's management, products and services, and financial records solid?  Is it a thriving company with a marketable product with a reasonable profit margin?  How does the price you are paying for the stock compare to the relative expenses of the company?  Fundamental analysis uses ratios and measurements such as Earnings per share (EPS), Price to Earnings Ration (P/E Ratio), and Return on Investment (ROI).  Click here to learn more about fundamental analysis in the Knowledge Center. 

So if fundamental analysis helps you decide WHAT to buy, technical analysis can  help you decide WHEN to buy, sell or hold. Technical analysis is the study of price movements and trends and can help you figure out when to enter and exit the market.  While some indicators use complex formulas and others are simpler, all of them seek to establish visual patterns that make sometimes confusing price data easier to understand and interpret.  Click here to learn more about technical analysis in the Knowledge Center.

So how about you?  Are you a purest that sticks to one kind of analysis over another?  Or do you combine the two and meet somewhere in the middle?