There are endless ways of thinking about the financial markets; for the sole purpose of this article I would like to focus in on only two, specifically regarding technical (trading) vs fundamental analysis (investing).
Technical Vs. Fundamental Analysis
Many investors focus on longer term ROI (return on investment) and are not as active in the management of their position(s). By having a more hands-off approach, many of the day to day emotions are alleviated or at least reduced. This is due to the removal of the “noise/volatility” that each instrument produces, even down to a microscopic level. While the type of analysis is based on the individual or entity’s personal approach, commonly there is a good bit of fundamental analysis involved. So instead of looking at technical indicators and/or price action, there may be more economic, financial and quantitative determinations to base the investment decisions on, and measure its intrinsic value.