Today I wanna talk with you about fundamental analysis.๐ช๐ป๐ช๐ป๐ช๐ป
๐งI think, that many of you heard about it, but did you have use it?
Write me in the commentsโ๐ปโ๐ปโ๐ป
Fundamental Analysis (FA) studies the fundamental foundations of a country's development of political, economic and financial credit policy.
In general, fundamental analysis identifies four groups of factors that directly affect the market:
๐๐ปeconomic ๐๐ปpolitical ๐๐ปrumors and expectations ๐๐ปForce Majeure
There is an opinion that market movements are determined by fundamental factors, and technical analysis allows you to search for entry points.
For a rational distribution of your efforts and the most efficient use of time and opportunities, you need to clearly understand the fundamental analysis mechanism, and also know when and where you can expect the beginning of movement, the time of trading sessions, reduced activity, and even lunch breaks at the world's leading exchanges.
You need to pay attention to the time of the release of the main economic indicators of leading countries, such important events as the performances of significant figures of the financial market, such as, for example, the head of the US Federal Reserve, the heads of the Central Bank of leading countries, etc.
However, one should not pay excessive attention to this, and think that upon learning any news (unless, of course, this news is of any catastrophic or global nature, such as, for example, the outbreak of war, the terrorist attack of September 11, etc. .), you can get ahead of the market and quickly make the right bets.
No matter how sophisticated the software and access to the news feeds you have, it is doubtful that even through the Internet you can have faster and more reliable information than that which the large forex market players possess. And even more so, it is unlikely that you are able to possess insider information.
Therefore - ANY NEWS that you have learned through the Internet, Surely the MARKET ALREADY KNOWS.
Therefore, your task remains the same: to follow the market, and not try to get ahead of it. Moreover, it very often happens that the marketโs assessment of any news is both belated and inadequate, and directly opposite to what one would expect.
For successful trading, you must:
๐ฅanalyze the reasons for the rise / fall of a financial instrument
๐ฅanalyze the depth of these reasons as a factor in influencing the trend of a financial instrument
In order not to waste time, analyze only the most important events.