FUNDAMENTAL ANALYSIS
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Thread: FUNDAMENTAL ANALYSIS

  1. #1

    FUNDAMENTAL ANALYSIS

    Fundamental analys is the analysis that rely on the news that happens in the world market. or that are circulating in the market. the content of this news drives the market trader's emotions to determine the value of a currency, stocks, or other instruments.

    one examples is the central bank's interest rate hike by the Fed (US. central Bank) can mean a stronger dollar. rising prices will hoist petrolleum stocks related to commodities, etc. if you do not like complicated analysis (count, graphs, etc), then now is the time for you to study this fundamental analysis.

    to learn fundamental analysis correctly then you should study economics, financial macro. for example, why a rate hike may make the currency stronger. will not be described here in detail about the economic laws. however, there are some news (economic indicators) which if you can use as a reference.

    American political and economic conditions greatly affect the world economy, because the U.S news and economic data is often used as a reference by investors against currency movements in the world

  2. #2
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    The biggest influence that drives the foreign exchange market isi nterest rate changes made by the eight global central banks(major currencies).And these changes are an indirect response to other economical events made through out the month,and these interest rate pocess the power to create intense volatility,because surprised rate change often make the biggest impact traders .
    HOW INTEREST RATES ARE CHANGED :each bank boards of directors controls the monetary policy of its country and the short term rates of interest at which banks can borrow from one another the central bank would hike rates in other the reduce or curb inflation and cut rates to ease lending and inject money into the economy to boost internal economy.

  3. #3
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    All the things that is on reading and digesting of the news and the activities of the economy is what the fundamentals trading stands for, and the more you take it up upon its stands , the better for you in getting the right clue about it. It is the opposite of all the thing that you can get on the trdaing chart , except for he placements of the order. The fundamentals is very risky to me.

  4. #4
    If we want to trade with currency pairs involving USD, we can perform fundamental analysis by monitoring the movement of the American economy. If we use the currency pair in the forex trading, we can monitor the movement of the European economy. Things we need to consider the use of fundamental analysis is the level of interest rates, including trade and investment development in a country, and also the level of unemployment in the country, because the unemployment rate is usually used to measure the stability of the economy and companies in the country.

  5. #5
    cozard007, But somehow we as retail traders not expected trade with of fundamental analysis. I think for big investors use the fundamental analysis of to apply . From above mentioned fundamental analysis does not help we to trade short term. we can use this trade a must if we wish to keep our position open for more than a week.

  6. #6
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    Quote Originally Posted by martyn View Post
    If we want to trade with currency pairs involving USD, we can perform fundamental analysis by monitoring the movement of the American economy. If we use the currency pair in the forex trading, we can monitor the movement of the European economy. Things we need to consider the use of fundamental analysis is the level of interest rates, including trade and investment development in a country, and also the level of unemployment in the country, because the unemployment rate is usually used to measure the stability of the economy and companies in the country.
    Yes you are right, pairs which have combination with USD currency mostly effects by fundamental analysis,like there are many new coming every day which effects that country currency like interest rates increasing or decreasing,unemployment ratio problems and also political condition of that country,that's why good traders always try to trade which is based on fundamental analysis more than technical analysis..

  7. #7
    i am a scalper trader and trading with small investment and my knowledge about world economic is small so i am trading with only technical analysis without fundamental analysis but have made few profit. i think fundamental analysis is helpful for long term traders.

  8. #8
    Well i think Fundamental analysis is the process in which the whole system is attended for verification & then rules are applied.if a trader can analysis as well the he can realize the market as perfectly, so a forex trader should try his best and that can help top make beautiful trade, But I think we need all three kinds of analysis.

  9. #9
    Fundamental analysis is not very easy to understand on all of it. Until now i still not yet fully knowing how to use the fundamental analysis at all. Im very confusing on it. After many years i had been trading in forex trading, i still cant get any clue of this fundamental analysis. But i awared of the news from us natural gas and non-farm. Sometime the impact is very high and making me undefine the way of the price movement. So, i will avoid trading when the news of these before release.

  10. #10
    If you want to be a good trader then you have to make a plan and no matter what will happen you have to stick with that. First learn basic and taste them in demo. Demo will help you to get some practical knowledge and it also help you to get some experience. In demo build your own strategy, build your future plan and learn to analyze. Apply them carefully in real trading. Take your time. Good luck..

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