How to learn forex fundamental analysis?
We'll be posting a set of articles on fundamental analysis within a two weeks to Forex Trading | MetaTrader Indicators and Expert Advisors - Fundamental Analysis. Check back often.
Various news is released by government and academic sources. They are reliable measures of economic health and are followed by all sectors of the investment market. News is usually released on a monthly basis but some are released weekly.
Fundamental Analysis is related to economic indicators and political scenarios in countries. It is very hard to learn as there are no 'rules' like in technical analysis- basically, you will need strong intuition and understanding of financial indicators, financial situation.
An example of fundamental analysis trading is the Gold in late days. After confidence in the $$$ decreased and people are afraid of bonds of other countries, they turn to the one thing which is constant and not printed by governments - Gold. This is the reason for the steep rise in prices.
The problem is, whether you could reach this conclusion before the surge of the Gold - and more important: could you make a decision?
Is there any reference which can let me know much about forex analysis, well I know, it need a quite much personal experience, needs to be much focused on global events which effects the forex market.. These are the generalised saying which many suggest to follow it up, I need something good reference where I can focus and learn much better.
Here is everything you need to know for start:
Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis.
To learn more about fundamental analysis and find out about other very important techniques in forex, I advice to subscribe to a very good newsletter(link below) You will get free forex autorobot as soon as you add your details. And you will be e-mailed with basic forex lessons and useful information.
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What Does Fundamental Analysis Mean?
A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and company-specific factors (like financial condition and management).
The end goal of performing fundamental analysis is to produce a value that an investor can compare with the security's current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).
This method of security analysis is considered to be the opposite of technical analysis.
Each factor that has an impact upon the country and the economy play a vital role in understanding fundamental analysis of the forex currency trading marketplace.
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Is there any reference which can let me know much about forex analysis, well I know, it need a quite much personal experience, needs to be much focused on global events which effects the forex market.. These are the generalised saying which many suggest to follow it up, I need something good reference where I can focus and learn much better.