tailieunhanh - Winning in Todays Hottest Marketplace_4

Tham khảo tài liệu 'winning in todays hottest marketplace_4', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter Fundamental Analysis It is commonly accepted that there are two major schools when formulating a trading strategy for any market be it securities futures or currencies. These two disciplines are called fundamental analysis and technical analysis. The former is based on economic factors while the latter is concerned with price actions. The trader may opt to include elements of both disciplines while honing his or her personal trading strategy. Typically fundamentals are about the long term technicals are about the short term. Keep in mind what Lord Keynes once wrote In the long run we are all dead. Supply and Demand Fundamental analysis is a study of the economy and is based on the assumption that the supply and demand for currencies is a result of economic processes that can be observed in practice and that can be predicted. Fundamental analysis studies the relationship between the evolution of exchange rates and economic indicators a relationship that it verifies and uses to make predictions. For currencies a fundamental trading strategy consists of strategic assessments in which a certain currency is traded based on virtually any criteria excluding the price action. These criteria include the economic condition of the country that the currency represents monetary policy and other elements that are fundamental to economies. 101 102 THE TOOLS OF THE TRADE The focus of fundamental analysis lies in the economic social and political forces that drive supply and demand. There is no single set of beliefs that guides fundamental analysis yet most fundamental analysts look at various macroeconomic indicators such as economic growth rates interest rates inflation and unemployment. Several theories prevail as to how currencies should be valued. Done alone fundamental analysis can be stressful for traders who deal with commodities currencies and other margined products. The reason for this is that fundamental analysis often does not provide specific entry and exit .