Connect with us

What is Fundamental Analysis

Published

on

 

Introduction to the Fundamental Analysis

There are two main approaches to analysis the market during trading sessions, and both are popular among traders. One is called Technical Analysis, and predicts changes in the market based on past occurrences, market tendencies and behavior.
Fxkinfin strives to ensure that all our traders are well equipped to take on the markets in confidence, with the trading educational guidance to assist you in better understanding trading and the markets. Let’s take a deeper look into Fundamental Analysis:
What is Fundamental Analysis?
When doing fundamental analysis, a trader studies the overall state of the economy, concentrating mainly on elements closely related to his trade. The research focuses on financial events including those that are remotely related but yet could affect the trade. Political, social and general events can all have a significant influence on the markets.
Why Choosing Fundamental Analysis?
This type of analysis is for traders who wish to dig deeper into the financial world. It takes a little more time than some traders are willing and able to invest, but should have positive outcomes if done properly. What stands behind any type of analysis is the wish to avoid surprises that might jeopardize the trader’s money. Therefore the deeper the research and analysis, the lower the chances to be taken by surprise. Some of the world’s top traders, who regularly appear on top rich lists employ fundamental analysis. This is defiantly a good track to follow.

We must emphasize that even when conducting a thorough fundamental analysis, there is no guarantee the trade will be successful. The nature of trading any instrument is its relationship to external factors that can impact it, and the fact that the market can dramatically change within minutes, flipping our speculations and changing the fate of our trades.

What is the importance of Fundamental Analysis?
An example that displays the importance of fundamental analysis can be found with the monthly US unemployed report, called the Non-Farm Payroll (NFP). The NFP usually affects the USD rate, which may lead to changes in the value of other instruments, such as Gold trading, Crude oil trading and others. Before the NFP is announced by the Bureau of Labor Statistics, traders speculate on the content of the declaration, and based on that . This is called fundamental analysis.


Common Economic Indicators Used in Fundamental Analysis:
  • Unemployment rate
  • Interest rates
  • New building permits
  • Federal funds rate
  • Changes in the Gross Domestic Product (GDP)
  • Income/Wages
  • Consumer Price Index (Inflation)
  • Currency Strength
  • Corporate Profits
  • Balance of Trade
Fundamental Analysis Tips
To begin employing fundamental analysis, every trader should find a number of informative sources, which will provide him/her with knowledge that will help with fundamental analysis, thus assisting and improving his trades. We invite you to check out our blog, which updates on a daily basis with crucial data relevant to all instruments.
The Basics of Fundamental Analysis
Many investors believe that fundamental analysis is an important component of almost any trading or investing strategy.

These are some factors to consider when conducting fundamental analysis:
  • What is the company’s revenue?

  • Is it growing?
  • Are they making a profit?
  • Are they increasing indebtedness or paying off debt?
  • What are their turnover rates?
  • Does management take care of employees?
All of this helps define a numerical intrinsic value for the security that can be compared with its current price so as to determine whether or not it is overvalued or undervalued.

What is the Difference Between Fundamental Analysis and Technical Analysis?
Fundamental Analysis is often (mistakenly) directly contrasted with Technical Analysis.

Many technical analysts say there is no need to mine corporate and economic data to determine a company’s value, because everything they need to know is already reflected in the price. Instead, they use a variety of methods to predict where price will go in the future. They may look at price volatility as measured by the strength and duration of a movement away from a previous level. They might apply a formula such as MACD, Bollinger Bands, or simply analysis of the moving average price over time. Online Trading Academy’s patented Core Strategy is a type of technical analysis that teaches how to identify supply and demand levels and then predict turning points in the direction of a security or the market as a whole.

Another common misconception is that fundamental and technical analysis are in competition and an investor must make a choice between them. In fact, when used properly, both can be useful tools for the investor.

Components of Fundamental Analysis
Fundamental analysis consists of three main parts:
  • Economic analysis

  • Industry analysis
  • Company analysis
Fundamental analysis is an extremely comprehensive approach that requires a deep knowledge of accounting, finance, and economics. For instance, fundamental analysis requires the ability to read financial statements, an understanding of macroeconomic factors, and knowledge of valuation techniques. It primarily relies on public data, such as a company’s historical earnings and profit margins, to project future growth.

READ THIS POST  3 Types of Analysis in Forex PDF in 2021

Kingsley Francis is the founder and Partner at Fxkinfin Financial Advocates, owners of fxkinfin.com. He is a financial writer with extensive experience in print as well as online media.

Click to comment

Leave a Reply

Your email address will not be published.

NFT

​Top 5 Celebrity NFT Collections Value

Celebrity NFT Collections. With entrepreneurs, rappers, DJs, and professional sports players leading the way, more and more celebrities are joining in the NFT craze than ever. Celebrity NFT Collectors. NFT collections

Published

on

Celebrity NFT Collections by Fxkinfin

Celebrity NFT Collections

With entrepreneurs, rappers, DJs, and professional sports players leading the way, more and more celebrities are joining in the NFT craze than ever.

Some launch their own NFT collections; some collect NFTs from other creators; some directly invest in NFT ventures. Some do all.

This guide will dive into the portfolios of the top celebrity NFT owners who have collected dazzling JPEGs from the most extravagant collections.

​Top 5 Celebrity NFT Collections Value

  1. Snoop Dogg: This guy owns CryptoPunk #8472, which was last sold for around $1.71 million. He also holds several other CryptoPunks, Bored Apes, Meebits, Moonbirds and more. The rapper’s NFT portfolio value is one of the highest out there. Approximate portfolio value: $4.63 million
  2. Steve Aoki: This american DJ is an avid NFT collector who owns multiple Bored Apes, some worth over $200,000. He also owns a CryptoPunk, several Moonbirds, Mutant Apes, Azuki, CloneX, and more. Approximate portfolio value: $903,000.
  3. Paris Hilton: She has long been an NFT advocate, recently launching her own animated NFT collection called Past Lives, New Beginnings. Early this year, she bought Bored Ape #1294 and showed it off on Jimmy Fallon’s TV show. Approximate portfolio value: $453,700.
  4. Madonna: This legendary singer, songwriter, and actress, recently made headlines for performing at the World Of Women NFT.NYC party. Her most expensive NFT is Bored Ape #4988. Approximate portfolio value: $215,490.
  5. Travis Barker: He aped into BAYC early this year after buying Bored Ape #7765 for around $241,000 at the time. However, his portfolio value has since dropped. Approximate portfolio value: $173,000.

Celebrity NFT Collections Value Image

READ THIS POST  3 Types of Analysis in Forex PDF in 2021
Continue Reading

Cryptocurrency

How to Take your Crypto Knowledge to an Advanced Level

Crypto Knowledge. you’re missing one important fact. No one was born a trader with a 95% success rate on all trades. No one has raised a successful investor with a 10,000% ROI.

Published

on

Crypto Knowledge by Fxkinfin

Crypto Knowledge Level

You probably follow a bunch of Telegram or YouTube channels related to crypto and think to yourself, “Sh%t, this guy knows so much, I could never come close to his level of success.

Crypto Knowledge

But you’re missing one important fact. No one was born a trader with a 95% success rate on all trades. No one has raised a successful investor with a 10,000% ROI.

The success you see is the result of battle-tested skills, tons of experience and years of learning. FYI, huge elements of such knowledge are derived from open resources that are also available to you

The Alpha Archives is a website created by crypto enthusiasts who wanted to gather the most valuable Twitter threads, podcasts, videos and articles about crypto in one place.

Crypto Knowledge

This archive contains 99% of the info you need to become an ADVANCED crypto user. Devour it and train your brain

READ THIS POST  How to Use Multiple Time Frame Analysis to Find Best Entry
Continue Reading

News

Uganda Gold Deposits and How Bitcoin is Related to Them

Uganda Gold Deposits. Uganda has announced the discovery of 31 million metric tonnes of gold deposits in the country. uganda gold discovery. Uganda Gold.

Published

on

Uganda Gold Deposit by Fxkinfin

Uganda Gold Deposits

Uganda has announced the discovery of 31 million metric tonnes of gold deposits in the country. A spokesperson from the Ministry of Energy and Mineral Development in Uganda, Solomon Muyita, said that these reports are aimed at attracting gold miners and investors.

uganda gold discovery

After several surveys, Uganda has finally announced that it had discovered tons of gold waiting to be mined in the country. These gold deposits are valued at approximately $12 trillion in a single country.

Check out how big it is: at the moment, ALL THE GOLD IN THE WORLD is valued at $8-$10 trillion

What if one day gold is found in some other secluded corner of the planet? Theoretically, the supply of this precious metal can be unlimited. And Uganda can potentially start reckless and quick mining of its own gold, which will easily lead to a gold market collapse.

Gold is the most reliable asset for investment, they said

Investors like to compare bitcoin with gold, and news like this confirms the advantage of the former asset. Satoshi didn’t come up with BTC’s deflationary mechanism for nothing.

Bitcoin is not digital gold, what kind of inferiority complex is this BTC is a unique one-of-a-kind asset that has already made and will still make hundreds of people millionaires

Uganda Gold Deposits and Discovery Image

Uganda Gold Deposits

READ THIS POST  3 Types of Analysis in Forex PDF in 2021
Continue Reading

Cryptocurrency

​ETH miners will become poor

​ETH miners. Ethereum Merge has been delayed a couple of times now. Finally, we’re supposed to see it in August this year. At least Tim Beiko, Ethereum developer coordinator, says Eth Miner. Ethereum.

Published

on

ETH Miners

Ethereum Merge has been delayed a couple of times now. Finally, we’re supposed to see it in August this year. At least Tim Beiko, Ethereum developer coordinator, says that the probability of another delay THIS TIME is between 1%-10%. The last hope of ETH miners to stay afloat is slowly fading away.

The Merge, a big upgrade to the network that will introduce a proof-of-stake consensus mechanism instead of proof-of-work that requires mining, can reduce Ethereum’s energy consumption by about 99%.

For miners, this is devastating, since a lot of them have spent about $15 billion on graphics processing units (GPUs) alone, not to mention additional costs, such as electricity bills, etc.

If the legendary Merge happens, ETH miners will be left with no choice but to choose a new cryptocurrency for mining. Monero, Ravencoin and Ethereum Classic are the most popular choice so far

​ETH miners

​ETH miners

Fxkinfin

READ THIS POST  How to Use Multiple Time Frame Analysis to Find Best Entry
Continue Reading

NFT

The Future of Opensea NFT Marketplace and Why OpenSea is Getting Outdated

Opensea NFT Marketplace. NFT collections are for and about different communities, NFT market. After all, NFT collections back then came down to PFP, and their only value was in the mere concept of digital art. Opensea

Published

on

Opensea NFT Marketplace

Opensea NFT Marketplace

Multicoin Capital analysts have come up with curious thoughts on the market, they’re definitely worth sharing. So, you’ve seen ‘regular’ NFT marketplaces like OpenSea or Magic Eden, right? The thing is, they generally share the same set of tools (discovery on homepage, same search presentation, etc.), they look and function the same way.

In 2018, when OpenSea was founded, it was okay. After all, NFT collections back then came down to PFP, and their only value was in the mere concept of digital art

Today, things are different. NFT collections are for and about different communities, that’s why marketplaces should map to the unique characteristics of communities and optimize around the type of content they host.

Verticalization of NFT marketplaces is inevitable. Accordingly, they will become community-owned and will integrate many non-commerce functions (e.g., live streaming, chat, forums, etc.). For instance, Grape Network has recently launched the first DAO-owned NFT exchange.

WHAT DOES IT MEAN?

  • Royalties and trading fees will flow back to the community treasury instead of 3d party marketplaces
  • The marketplaces will provide more than being just a financial intermediary, they’ll give additional value to the community (e.g., live streaming, chat, forums, etc.)
  • Exponential decline of fake and fraudulent NFTs

Niching down is really good for marketplaces and communities

Opensea NFT Marketplace Image

Opensea NFT Marketplace

READ THIS POST  EURUSD Crashes Below Key Support After HAWKISH FED Price Impact
Continue Reading

Trending