• The Forex, Binary Options Forum - welcomes you to our Community!

    DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.

    Please take a look around, and feel free to .

Fundamental analysis

Fundamental analysis comprises the understanding the total economy. It is not just the economic data. Market moves according to the all statistic graphs. You have to judge any data release as whole. That's the reason fundamental analysis is more complicated than technical analysis. You should have sound knowledge on enonomics.
 
This is one of the most promising areas on the market today. But it requires an accurate and detailed understanding of the market, so before you solve this issue, you need to understand the meaning of these news, and competently analyze the situation in the previous months.
 
Many traders, especially beginners, refuse fundamental analysis because it is too unsystematic in their perception - too much different economic information and there is no convenient functionality to formalize it. It is impossible to determine the right market entry point without technical signals. On the other hand, without understanding the fundamental factors, technical indicators make very little sense: a real trader should feel what drives the market.
 
Besides, fundamental analysis is practically useless for short-term trading, which means that its use puts limits on the volume of your funds. You may simply not have enough money for the current losses on an open position in several figures (or setting distant stop orders), which are possible when trading on medium-term trends.
 
I also believe that fundamental analysis is a very important tool in trading. By analyzing the world news, discoveries and shocks - you can understand what will happen in the market next. Prices for which assets will fall and which will rise in price. Of course, at first it will be hard, but watching the world news is like a habit that you develop over time. The main thing is to start.
 
It is very important to do an analysis of the market as many times as you can everyday before you begin trading. You may think that things are going on smoothly only for you to be shocked by the results of your trades. I always do this before I trade for at least an hour. It is good to be in the know, it will keep you at an advantage.
 
Technical analysis and fundamental analysis are the 2 main types of analysis-related stock trading. Fundamental analysis evaluates certain securities to create forecasts about its price in the future. This type of analysis uses specific indicators.
 
If you are fundamental trader, than you need to be very good at fundamental analysis. Also, it is useful tool for long term traders. However, I would not agree that short term, daily traders need to have too much knowledge about fundamental analysis. Technical is more important for them.
 
Besides, fundamental analysis is practically useless for short-term trading, which means that its use puts limits on the volume of your funds. You may simply not have enough money for the current losses on an open position in several figures (or setting distant stop orders), which are possible when trading on medium-term trends.

Yes you are right. Unfortunately most new traders assume that fundamental analysis means economic news. But that's not the complete picture. For fundamental analysis and its effect on market, one needs very deep knowledge and understanding of countries economy.
 
Fundamental analysis takes a lot of ideas about a country's economy. It gives an idea of how a country's economy is going and what the economy might look like in the future. Many brokers have a variety of articles on fundamental analysis on their sites. Traders benefit greatly from these articles. And when the news is published, there is a lot of volatility in the market. This news is very important. It can change the movement of the market. So the importance of fundamental analysis in the Forex market.
 
There are two noteworthy analysis for trading. Those are technical analysis and fundamental analysis. A few traders utilize technical analysis as their trading instrument, some are utilizing fundamental analysis for their trading. Also, there are traders who consolidate both technical analysis and fundamental analysis for their trading.
 
If a country's financial situation is bad, then the currency of that country may be weak and it depends on how the fundamental news is being published. It helps a lot in trading.
 
automated trading is a source to bring profit even though there is no trading knowledge and experience , so of course someone can use it with no doubt.
 
It is difficult to make a profit if it is not possible to combine the fundamentals with the technical. So every trader needs to do fundamental analysis.
 
Top