Typically, beginners prefer fundamental analysis. The reason for rejection of the technical method is in its mathematical basis and geometric terms. Many people think that such information is not easy to read and analyse.

Technical analysis ensures a profit in a significant number of cases and with a probability of 60-80%. This is a very attractive performance. Many trading systems are based on mechanisms rather easy to understand, and in the longer run, make it possible to gain a bigger profit.

Fundamental analysis requires extensive knowledge of the evolution of the market over a long period of time and the understanding of the correlation and the principles of its dynamics. In order to navigate in the current situation at a competent level, you need to understand the economic development in the context of relations between the countries and in many countries.


It is important to understand that a quick overview of news on the world economic and social situation and the forecasts of experts will be insufficient to reliably calculate the trends of change in asset price. Ideally, fundamental analysis should be done by specialists with the appropriate profile of higher education. Or, at least, by very well informed people who are willing to spend many hours to understand the principles in addition to the relevant information.

A good parallel could be done with construction project. If you set out to build a house for many years of comfortable life, you need a solid foundation and quality materials. Thorough preparation for long-lasting and highly efficient results is the fundamental analysis. If you are after a summer cabin when the season is on the way, just put together walls of planks, cover them with a roof and move in. This is the technical analysis. It gives results here and now, almost without prior training.

From the foregoing, it can be concluded that the foundations of technical and fundamental analysis when trading binary options are quite similar with regards to key principles, which are used for trading by some of stock exchanges. In addition, a detailed analysis of the methods leads to the conclusion that fundamental analysis is complex and requires deep knowledge of various social, economic and financial areas. Whereas the technical analysis is more concrete and comprehensible without preparation.