Fundamental Analysis

Last Updated on by Alphaex Capital

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Fundamental Analysis For Beginners

What Is Fundamental Analysis

Technical Analysis is the art of predicting market movements using visual representation and to time your trades accurately.

Whereas fundamental analysis is the understanding of macro and global economic events and data released by countries to issue to the markets which highlight whether there is growth in the country or not.

These data points are crucial to understand and look out for as they can move the market significantly.

For example, the non-farm payroll can move the market 30-100 pips within seconds depending on the data released.

If you have trades open during these times, you can be taken out of a trade and what could have been a winning trade, could quickly change based on the data output.

So, one of our rules to trading is to not trade near or during high-impact news events.

Why Use Fundamental Analysis

It is important to learn how the economies are doing as these play huge roles in whether a currency price is rising or falling.

Economic Data drives the prices of the currencies, so by understanding how different economies are doing in a general direction can easily highlight where the markets could go over a course of several months or greater.

How To Use Fundamental Analysis

In this section, we will go through the key data points released each month, what they mean and how the effect the markets.

In this course, you only need to understand the basics as you will not be holding onto your trades for months/years etc.

You will be using the data points to gauge and build an idea on the direction of the overall market sentiment and enabling you, by understanding the economies, a greater advantage of trading in the right direction with the smart money.

A lot of courses will shy away from this section because it is more “academic” and they don’t fully understand the impact of these events on a larger level. We will be going into great detail with trading economic data in the future.

The most overlooked part of fundamental analysis for many traders (especially beginners) is the very short-term impact they have on the market.

By highlighting these high-impact data points, this will help reduce poor trades and should always be taken into consideration when entering a trade. The whole point of this free forex trading course is to share the true golden nuggets with you and to reduce the element of luck involved in trading!

By the time you have finished this course fully (including all the quizzes), your brain will have retained an awful lot of information. With fundamental analysis, it is important to consider the impact of each data across each asset – this is the kind of analysis that will take the longest to learn, but when you do – everything will be part of a bigger picture and making trading so much easier to profit from.

Fundamental Analysis Quiz

A brief introduction to the Fundamental Analysis section, key here is to understand when to avoid trading and how you can utilise this data to predict future market movements. Take our “Fundamental Analysis” to make sure this information has sunk in!


What Does Fundamental Analysis Help Us Understand?

Correct! Wrong!

What Is Fundamental Analysis?

Correct! Wrong!

What Is One Of The Main Rules When Trading On A Smaller Timeframe?

Correct! Wrong!

What Do Economic Data Release Effect?

Correct! Wrong!

If You Were Watching The GBP/USD & Positive News Came Out From The UK, Which Direction Would You Expect The Price To Go?

Correct! Wrong!

If You Were Watching The USD/JPY & Positive News Came Out From The US, Which Direction Would You Expect The Price To Go?

Correct! Wrong!

If You Were Watching The EUR/USD & Positive News Came Out From The US, Which Direction Would You Expect The Price To Go?

Correct! Wrong!

Fundamental Analysis: The Quiz!
Congratulations, you have passed the quiz! Please, continue to our next section to continue your learning!
Oh no! Don't worry though, you can retake the test as many times as you want. The answers are in the lesson above and it is important you get a good understanding by completing these quizzes.

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