Traders Blog

I decided to write a whole series of posts on different topics under one general idea. The point is that in my work there are three key methods of market analysis: technical, fundamental and mathematical. I will tell you in detail about each of them, and I will not give a dry informational squeeze, but will convey my understanding and the very essence of these methods.
I already wrote an excellent post about technical analysis, who have not read it, follow this link. Now it's the turn of fundamental analysis. Let's break it down to the details together.

What is fundamental analysis? In a simple sense, this is an analysis of important events taking place around the world. That is, we make trading decisions based on economic and political news. This is an extremely complex analysis method suitable only for real professionals.

The most important thing is that when trading based on fundamental analysis, you need to stand in a transaction for at least one month. In order to earn good money at the same time, you need to have a huge capital. Therefore, for the vast majority of traders, for example, like me, like you, this method of analysis, as the main one, is categorically not suitable. Our deals are short-term because we need to give out a high percentage yield every month, we are hungry. We can't afford to sit in deals for six months.

So how do I use fundamental analysis in my trading?

First, I always monitor the general situation in the world. You need to be aware of all important events. Quite often it is not that difficult to understand how the foreign exchange market will react to a particular piece of news. A simple example, we learn that the UK is about to leave the EU, against this background, a strong downtrend begins, in which we confidently sell and earn more than 200 points of profit. In order to always be in the know, it is sometimes worth watching TV channels Russia 24, RBC or reading various news publications. The main thing is not to abuse it, otherwise you will turn into an information addict, everything in moderation.