Trading with Fundamentals - A Step-by-Step Guide #lessismore
1/ While technical analysis is popular, understanding the fundamental aspects of a market can provide valuable insights. Here's a step-by-step guide on how to incorporate fundamentals into your trading strategy: #lessismore
2/ Research & Analysis. Start by conducting thorough research on what influences the pairs you trade, for me, I mostly trade XAUUSD so I would focus on USD fundamentals.
3/ Identify Key Metrics. Determine the key fundamental metrics relevant to the pair you're interested in. This could include understanding inflation of that country, Debts, monetary policies, fiscal policies, Understanding how the company grows its economic. #Lessismore
4/ Compare and Contrast. Compare the fundamental metrics of that pair you're analyzing with its competitors and industry benchmarks. XAUUSD for example is correlated a lot more with AUDUSD because
Australia is one of the top players of Gold but USD is the major currency used as an exchange for goods and services.
5/ Evaluate Catalysts. Identify potential catalysts that could significantly impact the company's market your trading. These could be upcoming earnings reports, product launches, regulatory changes, or macroeconomic events.
6/ Understanding major macro events such as CPI, PPI, NFP, FOMC even activities going on in the country such as war, riots, elections. These activities will affect the economy of that country.
#Lessismore
#Lessismore
7/ Risk Assessment. Evaluate the risks associated with the market you're considering. Assess factors such as competitive landscape, regulatory risks, industry disruptions, or geopolitical events that may affect the fundamentals. #Lessismore
8/ Trading Decision. Finally, based on your analysis, make an informed trading decision. Consider the fundamental factors alongside other aspects like technical analysis, risk tolerance, and your overall investment strategy.
9/ Fundamental serves as catalyst for price movement not an indicator for trend reversal, understand that fundamental also respect technical will save you a lot. #Lessismore
10/ To learn more on fundamentals, would employ you to order EXCLUSIVE GUIDE TO TRADING [5 Copies left ]. selar.co #lessismore
Remember, fundamental analysis is a long-term approach and may not always provide short-term trading signals. It requires patience, discipline, and continuous learning. Integrating fundamentals with technical analysis can enhance your trading strategy. #Lessismore
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