 Once again ladies and gentlemen boys and girls and children of all ages you are now tuned in to the Prince of Invest and coming To you guys and girls live all the way from a beautiful state Denver, Colorado Be a beautiful state. How little Hawaii and I wish I could be in Hawaii right now But anyway, thank you guys and girls for tuning in Don't forget that likes a strike comment share button check out the description box to support all the efforts that we're doing here now I think take But as always, I don't have a lot of time and I definitely you guys and girls are a lot of time. So we're gonna jump straight into it Today's episode we're gonna talk about fundamental analysis versus technical analysis now I know some people always say Okay, well, that's kind of a you know a vague topic could be a little difficult or whatever But I'm gonna break it down and tell you why it's important how to apply to me how to apply to you So when I very first got into the world of investing everybody always thinks of technical analysis I was like me. I'm not too smart. You know investing is too hard You know because you gotta know when to get in when to get out you gotta know, you know, what's the right chart? What is this whatever case may be or whatever what I didn't realize is that what I was thinking about was technical analysis I wasn't thinking about fundamental analysis Prince. What is it? What's the difference? So first we're gonna talk about what is fundamental analysis. Then we're gonna talk about what is technical analysis Then we're gonna talk about how did how do you have this saying how they could be used who used in the most and how they could Benefit you with knowing this knowledge This will help you and direct you will becoming a better investor because it helps, you know, where you stand, right? So first fundamental analysis Fundamental analysis when it comes down to the world of investing in finance and things like that Those are things that are very fundamental like income statements. If I let somebody borrow money How much money do they make? How much money do they spend? How much money does it cost to operate the business? How much debt is the business in? Those are the things that are fundamental their fundamental things things that you want to know about a company You was gonna go invest into a company simple things you want to know. What is the brand? Is it a good brand? Is it a strong brand? Does it make money is it a profitable company? Is it a non profitable company? How much money does it make? How much money does it spend? What is the network? Those are very fundamental things that people use So when you look at this the people that use these things are usually your long-term investors long-term people for prime example Let's take let's for example. Let's take you my most recent purchase stop But two of my most recent purchase stop I've been a long-time investor not a long time few years investor into McDonald's, right? It was Wesley's sixth birthday and for his birthday. I brought him a couple shares of McDonald's, right? years have gone by and The shares have done pretty well thus far it done so well that I always wanted to buy more shares and When I want to go buy more shares the stock kept going up and it's not a good time to buy when the stock is going up If you pay attention to the news as of lately the CEO was fired from McDonald's the CEO was fired for sexual misconduct For sexual conduct with an employee, right? When I immediately saw this I said, huh CEO getting fired for sexual misconduct Fundamentally has anything happened to the fundamentals of the company. I E I'm investing to a company not because of the CEO. I'm looking at the money finances Has anything happened to finances has anything happened to? the income of the company the Network of the company and the answer was no the only thing that it could possibly mess with was the was the management But I'm in the strong believe that McDonald's is much like Coca-Cola Meaning that a ham sandwich can run McDonald's if I was a CEO of McDonald's tomorrow It's kind of hard to mess up the brand of McDonald's at this point. It's a pretty well old machines Everybody know what it is. It's the strongest fast food brand Everybody copies it. Yes, people says unhealthy. Well in case can be but we all know all the kids love it And they're new kids being born every day. So it's pretty hard to run I'm pretty sure the CEO was stepped down. He's already done and a new CEO was stepped in and McDonald's would do just fine So the stock dropped 3% Just from the CEO getting fired when that happened I saw that as a golden opportunity to go in and purchase additional shares of McDonald's Because I knew by the time things give me wrote around by the end of next week We'll forget all about the McDonald's CEO. We wasn't thinking about them before we won't be thinking about them in the future So I knew that wouldn't be a great deal blow to the company So I use fundamental analysis to say nothing happened to the company Fundamentally the stock drop just due to public relations, right? Anytime you have a big blow black like blow back like that Nothing fundamentally happened to the company. I was able to go in purchase additional shares within the next day or two The company went right back. It was that I want to say a hundred and ninety dollars didn't drop down I brought shares. It went back up to a hundred and ninety something dollars. We're not making that position profitable with a day Right, so that was I you I utilize fundamental analysis I just looked at the fundamentals of the company and I said nothing It's on them into the company and I was able to make an investment. Just use fundamental analysis Now technical analysis technical analysis technical analysis is the stuff that We see in the movies, right? When I mean by that is on Wall Street, you know you being I've been on trading floors and the trading floor just monitors all over the place Numbers are jumping up all over the place charts are here charts are there people are drawn all across the charts They're drawing X's and O's and dots and eyes. They have the candlesticks. They have the mountain charts They have all these type of things You know, they're looking at moving averages to 20 day moving average to 200 day moving average Crossing over each other. This is all this technical stuff They're doing technical analysis to see where to stop we're head to next, right? You know people can I know great friends of mine who are day traders, right? And and you know go back to a technical analysis is very popular in the Day trading space. There are people who pop up the monitors who watch the monitors. They watch where the stock is trading They watch the volume. They watch things like volume moving averages on top of Numbers and all the good stuff like this, you know, you look at the curves the pie charts this curve hit that curve All these other great knowledge is out there where people they're trying to make a prediction of where will this stock head next? Those are usually short-term day trading investors short-term people. They don't care about how much money and finances of McDonald's or whatnot. They're looking at hey, look Steep sell-off. I think it's gonna bounce back here. Boom. I'm gonna short it I'm gonna bet against it boom I'm gonna bet with it and they make their money in between that is technical analysis, right? And that is usually when we look at the world of investing the most popular thing It's the first thing we see when we see Wall Street Technical analysis we see people do all these things Technically and we start to wonder. Oh my god. I can't do that or whatever Not realizing that there are two sides to it if you're gonna be the long-term person You're gonna be the long-term investor aka the Warren Buffett's of the world You're gonna be somebody who's looking at a lot of fundamentals of the company. Is this a good company? How much money has it made how much money has it lost all of this thing? Here's another example just earlier this week. You had under armor on the armor dropped 50 I know they dropped about 10% if I'm not mistaken It drops somewhere between five to 10% in a day due to them falling up on an investigation Because of accounting practices, right? So me as a fundamental person I said well accounting practices that mean that they could be they could have been reporting bad numbers That says that hey investors are better investing off of numbers Maybe they've been reporting bad numbers that automatically strikes fear Right, cuz that's going against my fundamental analysis. I didn't look at under armor as a buying opportunity because of The fundamentals was in question McDonald's I made a investment into them because I used my fundamental analysis and it was and it was Favorable to me. I say hey nothing has happened fundamentally. This stock just dropped just because of public relation They forget about this and it bounced back up. So I made a position on McDonald's Under armor they fell upon a student because of bad accounting practices when I saw that whoa whoa whoa bad juju That goes against my fundamentals. I can't make a judgment of fundamental analysis I didn't jump on it, but both of the companies rebounded, but I feel more comfortable with a McDonald's That's a fundamental person when we're going back switch gears to a technical person. They're looking at home May I still sell off for the day? They may look at the news of why sold off, but they're making trades for today Maybe for the week or for the month for the month then was short-term investors, right? There's someone I know one guy trades Apple every single day and he's been trading Apple stock for the last 200 years And he knows Apple like the back of his hand and he turns it on he looks at charts He knows what Apple is going to do. He watches volume. He uses candlesticks He watches the bulls and bear when they're going to come in He used the 10-day moving average with the 20-day moving average all these amazing charts things like that to make his Adjustment those are technical people Okay, Prince you told me what you told me what fundamental was you told me what technical was you told me the type of two people They use it how I could be beneficial to you So what? Just so what purpose is this is what scares people away from the world of investing when I saw the world of investing The first thing I looked at I I evaluated the funder. I evaluated the technical analysis I said, whoa, you got to be like a chance to understand Investing because you have this and that and you know all these type of formulas and blah blah blah blah What are the keys should be I got to have charts and I got to have four or five monitors That's sitting in front of me and I got to know when to buy and when to sell and when to do this When to do that when to do that That's what I thought the world of investing was and that's what kept me away from it as a young man I said, man, you know, I stayed away from the world of investing because I thought man, this might be too difficult so but then as I got older and as I educated myself and learned and learned from different investors and for my education and for my Formal and informal education. I started to stockpile my library. I realized wow There's a difference between technical analysis and fundamental analysis and I'm more of a fundamental person and in beginning I didn't know who I was I started off in the beginning. You know, I was doing forex. I was doing penny stocks I'm doing some everything just want to get my hands into everything I was buying all the technical analysis books to see when a stock will drop when it will return when it would do this How to read charts moving patterns, you know, all the good stuff like that, you know And then when I started I thought that was part of investing But now I'm able to differentiate between the two. Wow. This is technical. This is fundamental You're a fundamental person. You may love a Warren Buffett. If you're a technical person, you may love one of our popular day traders I know that I know personally, Mr. Oliver Belez, right? He may be a big person in the day trading world. There's numerous big day traders that are out there But those are two people. So when you go into the world, you have to figure out I learned fast It was a time when I was younger. I just wanted to be make it on my own Then as time it came I want to be successful But some are still struggling with today when I say man, I want to be successful I don't know the roadmap a lot of times But when you know what you want to be my son came to me and said dad. I want to be a police officer You know exactly the path it takes to be a police officer, but if my son says dad, I want to be successful It's a wide array So coming to the investing world where you know exactly hey, I'm investing for I'm trying to make money I'm a make money person. So you may utilize technical analysis and you may to see You may go down a direction and finding more things that make you technical, right? Versus you somebody hey, I'm I have a nice job a nice career or whatever. I'm looking to grow my money How can I grow my money when you look to grow money? What does that do? That's somebody who's looking at the fundamentals. Who's a long-term person, right? So the thing is knowing if you are someone who's looking to grow money versus someone who is looking to make money You can differentiate between I'm a fundamental. I'm a fundamental person. I'm a technical person Once you know that I'm looking to grow money. I'm a fundamental person now. You can learn to study Financial sheets you can learn to study Companies when they're good and when they're bad because I like to find Good companies that's having a bad time Great companies that having a bad time. That's what I like to find right? That's why I think McDonald's a great company had a bad time. I like to jump in right? So it's the same thing with if you're a technical person. Hey, I want to do this as a living I want to do this as a job. I want to sit back. I want a day trade if you want a day trade Then you're someone who may go out you may say hey, I want to study People like I'll ever less people who have Patterin chart who know how to make charts and who know how to read charts because I'm looking to invest what today tomorrow Evaluate volume because I'm looking to make money. So now you can go down the technical analysis field The thing is you don't want to end up with both like me, right? I need to grab some technical stuff and grab some fundamental stuff All this stuff right, but if you know where you're going you get there whole lot faster when you know like hey I'm a fundamental investor. I'm a person who likes to invest into fast food restaurants Once you know who you are you can become great at it It's just that we don't know where you're going just that person who goes to college just to be successful They may end up wasting a lot of time versus the person who goes to college and know exactly I want to be a doctor Their chances to success is 10 times better right Hopefully that makes sense to you guys and girls. I did a date Hopefully that makes you a better investor. Hopefully now that you know the difference between the two some people They don't even know it's a difference. There's a difference between the two You know it's a difference. You know that fundamental user a long-term person looking to grow money Technical persons use a short-term person who's looking to make money, right? So you know which one you want to do If you want to be the master of them all go ahead, right? But if you want to say hey, I want to choose a path and I want to become the best technical Chalk reading pattern person in the world go ahead If you say hey, I want to be the fundamental person. I want to be the best fundamental person in the world Go ahead But over time he's shown that the fundamental long-term person is usually the bigger winners when it comes down to the world of investing Not saying that you know, yes, somebody may make ten billion dollars if you end up making Two things that's not bad either. Whatever it is be great at it. So Hopefully that makes a lot of sense. Hopefully they help you Don't forget to hit that like subscribe comment share button drop us a comment below if you got comments drop us an email below if you Want to shoot an email? Until the next video podcast book Cartoon or whatever else crazy you see us do around the globe Whatever you decide to do be great at it Peace be safe. I'm out and thank you