00:00Neither is objectively better.
00:02They answer different questions and serious traders typically use both,
00:06though the right weighting depends entirely on your time horizon and goals.
00:09Fundamental analysis evaluates intrinsic value using earnings, revenue growth,
00:15PE ratios, debt levels, and macroeconomic factors, interest rates, inflation, sector trends,
00:22making it suited to answering, what should I own, over months or years?
00:26Technical analysis studies price-slash-volume patterns to answer,
00:31when should I enter or exit, which matters most for shorter time horizons.
00:36Key distinctions by use case
00:381. Long-term investors, holding periods of 1-plus years, rely primarily on fundamentals.
00:44Valuation metrics like PE, PB, and free cash flow explain the majority of long-run price movement
00:51in equities historically, though exact attribution percentages vary by study,
00:56and asset class.
00:572. Day and swing traders, holding minutes to weeks.
01:01Lean on technicals since fundamentals rarely shift meaningfully within such short windows.
01:073. Crypto and forex markets, lacking.
01:10Traditional earnings-slash-balance sheet data for many assets push traders toward technical analysis
01:16by default, supplemented by on-chain metrics or macro-catalysts.
01:20Rate decisions, regulatory news, as a fundamental proxy.
01:254. Algorithmic and high-frequency trading is almost entirely technical-slash-quantitative,
01:30since it operates on timeframes where fundamentals are irrelevant.
01:34Context matters heavily.
01:36A value investor buying and holding a stock for 5 years gains little from RSI signals.
01:42While a day trader has no practical use for a company's quarterly earnings report unless
01:47it's the day it's released, earnings releases do cause short-term technical breakouts, which
01:52is where the two approaches intersect.
01:54I can't verify current back-tested performance stats comparing the two approaches head-to-head,
01:59as results vary widely by asset, timeframe, and methodology.
02:04Be skeptical of any source claiming one approach has a fixed win rate over the other.
02:09Practically, match the tool to your holding period.
02:12Use fundamentals to decide what to buy, technicals to decide when, and combine both if you trade
02:18actively while holding positions for weeks or longer.
02:21Finally, remember that everything we discussed today is for educational purposes only and does
02:27not constitute financial advice.
02:29Good luck to everyone, and see you in the next video.
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