Fundamentals of fundamental analysis
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Thread: Fundamentals of fundamental analysis

  1. #1
    Join Date
    Oct 2019

    Fundamentals of fundamental analysis

    Basic analysis is not difficult or worrying and does not require us to graduate in financial and economic sciences and all we need are fundamentals that mean factors affecting the economy of a particular country
    This analysis is not used by most traders and maybe we too, but why don't we try to get its essence because it plays a role in trading and gets into many good strategies

    To understand the fundamental analysis is like conducting research that is on all political and even social economic data, but not just data, but those that affect supply and demand for any financial benefit, simply make supply and demand work as an economic indicator that may appear difficult, but with some practice and effort. You'll find it less complicated.
    Where do you start? A good question we might always ask where to start the basic analysis.
    The economic calendar is a very valuable trading tool that basically includes major economic events in many markets such as advertising - profit reports - important speeches even here sees it simple but the economic calendar has the ability to present all relevant events in one place without having to To look for it in different places and sections shortened by this time and effort
    Come to the events mentioned in the calendar which are of great importance in influencing the economy of the countries and known to a great deal
    GDP: GDP is an abbreviation of gross domestic product, a term that we always hear in the news and gdp is very frequently used and is basically a means of measuring the market value of goods and services of the country for a specific period - annual or quarterly - and GDP is also a means To provide the strength or weakness of the economy and measure its performance over time and to make it simple for you just remember * GDP measures growth
    And there are two types of GDP that they need to know.

    Real GDP: It means inflation and deflation and is called real because it gives a realistic view of GDP over time
    GDP per capita: it means purchasing power so that GDP is divided by population and the result is a better comparison of living standards between countries
    The number of jobs created in all sectors except the agricultural sector -NFP - is an estimate of a salary scale in american companies and government agencies excluding the agricultural sector and this statement is issued always on Friday at 08:30 EST and these data are always relevant for the previous month
    Investors are waiting for this report monthly because it is an excellent source of the current and future economic process of the country, which makes the statement very impressive.
    The monthly report of the worker and employment or what is known as the labor force survey, which is a key indicator that provides information on the level of employment and unemployment in the country and includes
    Employment rate - number of employees and employees in government agencies of the country / unemployment rate - number of unemployed -
    Interest rate announcement: It is important that any change in the interest rate of a country is a major economic event because it affects all sellers of exporters and importers and is important for forex traders because interest rates are important for assessing the value of a particular currency
    Central banks such as the Central Bank of Japan and the British Central Bank have a schedule of meetings and often come not to change the interest rate, sometimes they come up with an increase or a reduction in the price, which has a big impact on the market.

    Interest rate decisions of the U.S. Federal Reserve we know that any change in the interest rate is very important but there is no more impact than the decisions taken by the Federal Reserve and this is due to the importance of the dollar and its impact on the global economy and investors are waiting and listening in they're even looking for hints at the words and words of the feds chief of the Fed in the hope of getting any idea of when and what the bank will decide
    Consumer Price Index: It measures the average price of a basket of goods and services and the change in it reflects the rate of inflation
    The Consumer Confidence Index, which is in the opinion of experts, measures something immeasurable as it wants to know how much the consumer is optimistic about by knowing how the consumer is spending and saving.
    Retail sales: Something done by shops where receipts are taken into account in stores that sell goods, which gives important hints about consumer spending
    Industrial production: This indicator indicates the output of factories and mines in the country and through which investors can get an idea of how the economy performs in addition, industrial production enables to predict changes in labor, income and profits, which is important information for traders and investors.
    Last edited by hope; 10-13-2019 at 01:52 PM. Reason: DEELETE

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