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What is Fundamental Analysis

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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.

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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.

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Investment

Is Day Trading Worth It? How to Get Started in 2023

Is Day Trading Worth It? in 2023? What is Day Trading why it matters? For the few that figure it out, it’s a great career. Is Day Trading Profitable? The short answer is Yes

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Is Day Trading Worth It

Is Day Trading Worth It?

For 99% of people who try to make it a career, the answer is NO. For the few that figure it out, it’s a great career.

What is Day Trading? Is Day Trading Worth It?

Day Trading is where you buy and sell over a single day’s trading with the intention of profiting from small price movements.

These traders like picking a side at the beginning of the day, acting on their bias, and finishing the day with either a profit or a loss.

They don’t like holding their trades overnight.

Is suited for forex traders that have enough time throughout the day to analyze, execute and monitor a trade.

Is Day Trading Worth It?

I have been at this a long time, have walked through the valley of death, and know what it takes to be successful, and I can tell you who is full of shit and who isn’t by what people post on these forums.

Most of what you read is from day traders who are not making money. At best they are breaking even, but more than likely their account is slowly dwindling away month after month.

They stay in the game because they win about as much as they lose, but are not profitable. The commissions are slowly eating away at their account, and they are frustrated because they believe they are good at this, but their P&L does not reflect this. They have convinced themselves they are really close to turning a profit, but it never happens.

When they finally throw in the towel, they will post things like… day trading does not work, nobody is making money, if you day trade you will lose money, the system is rigged against you, etc. Those that don’t throw in the towel should post things about how simple it is, you buy here and sell here, and you do this and do that, and here is how I am making money. When they tell you how they are making money, that is when your BS meter should go up. Nobody ever wants to talk about losing money or losing trades, just the winners. The guy in the chat is always talking about the winners, but never the losers. When I talk to people about trading, we never talk about winners, just the losers. Is Day Trading Worth It?

Is Day Trading Worth It?

There are a whole bunch of reasons why people are unsuccessful in day trading, and can’t make this a career, but the biggest hurdle is you. Trading comes down to you making decisions. The way you make decisions, your thought process, and how your mind works under stress, all influence how you trade. As humans we are all hardwired the same way, have been taught the same things, and react to certain things the same way. If you were in a shopping mall and heard gunshots, what would most people do? They would run. They would run away from the gunshot sound. Others would take cover. How many would do nothing? Almost nobody would do nothing, because we equate gunfire with being shot and possibly killed, so doing nothing is crazy.

Psychological Part of Day Trading

When you are trading, and the price goes against you, you are going to react like the 99%. Just like those that ran or took cover when they heard gunshots. You are going to react and make decisions, predictable decisions, just like the 99%. The market understands this human behavior and trades against the expected behavior. You will never be successful, and being able to think about day trading as a career, until you change behaviors, is very hard to change.

I go into every trade expecting to lose. You go into every trade expecting to win and have already calculated how much you expect to profit, and what you are going to buy with your profits. Different mindset.

Emotions in Trading

I am okay with losing 50% of my trades if I am trading according to my plan. You are not okay with a single loss and the idea of losing is painful. Again different mindset.

If I am winning too much, I see it as a bad thing. You see it as you are an incredible trader, and you are the shit!. I see it as me getting out of winning trades too early. You are focused on your win/loss ratio. I don’t care about the win/loss ratio, because it does not mean anything to me. Different mindset

I only know how much I am willing to lose on a given trade. You only know how much you plan to win on a given trade. Different mindset.

I have outlined a few characteristics of how a successful trader thinks vs an unsuccessful trader. Be honest and ask yourself which one are you.

Is Day Trading Worth It?

Day trading can be an incredible career but you have to know what you are doing, and have to be humble and respect the market…and most of all protect your capital at all costs.

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News

Fed Rate Hike, The Fed’s last rate hike will come in January, Morgan Stanley strategist says

Fed Rate Hike, The Fed’s last rate hike will come in January, Morgan Stanley strategist says. fed rate hike december 2022

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fed rate hike december 2022

Fed Rate Hike, The Fed’s last rate hike will come in January, but stocks will still be under pressure from dismal earnings in 2023, a Morgan Stanley strategist says

  • The Fed could stop hiking rates as soon as January of next year, according to Morgan Stanley’s Andrew Sheets.
  • Sheets pointed to evidence of falling inflation, though he noted central bankers would likely keep monitoring the economy after pausing rate hikes.
  • But while investors are hoping a pause could spark a new rally, he warned that stocks will still be under pressure next year on poor earnings.

According to Morgan Stanley strategist Andrew Sheets, the Federal Reserve’s last rate hike could come as soon as January, but stocks will still be under pressure from dismal earnings into 2023.

“We are in the camp that the Fed will be early to pause. We think the last Fed rate hike is in January,” Sheets said in an interview on Bloomberg TV on Wednesday.

Fed officials have warned the central bank needs to make more progress on inflation, which remains well above the Fed’s 2% target, before letting up on rate hikes.

But inflation is showing clear signs of coming down, potentially causing the Fed to pause its monetary tightening regime earlier than expected, Sheets said. Prices clocked in at 7.7% in October, down from the 41-year-high of 9.1% in June.

Comparing the Speed of U.S Interest Rate Hikes (1988 – 2022)

Fed Rate Hike, last rate hike will come in January, Morgan Stanley strategist says

After its last rate hike in January, the Fed will likely hold its policy rate and continue monitoring the economy to see the full effect of its tightening so far, he predicted, adding that there is still a lot of uncertainty on inflation’s trajectory next year.

But central bankers risk undoing the tightening they’ve done so far by pausing rate hikes, Sheets pointed out.

“Can the Fed really pause without reversing the progress that it’s made in tightening financial conditions? Almost by definition, once it stops hiking, it’s easing. And does that work against everything the Fed is trying to achieve?” he said. “How does its message that I think is a really big debate.”

Stocks are still likely to face downward pressure with dismal earnings into 2023, Sheets said. He pointed to estimates from Morgan Stanley’s top stock strategist Mike Wilson, who warned that earnings were 20% too high at current levels, which could cause stocks to plunge to a new bottom early next year. FED RATE

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Market News

Japan to Buy Yen For The First Time Since 1998

Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998. Yen to USD

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Japan to buy yen

Japan to Buy Yen

Japan intervened in the foreign exchange market on Thursday to buy the yen for the first time since 1998, in an attempt to shore up the battered currency after the Bank of Japan stuck with ultra-low interest rates.

The move, which occurred in late Asia hours, saw the dollar plunge more than 2% to around 140.3 yen. There were no subsequent signs of further intervention or help for the BOJ from other central banks and the dollar was last around 1.2% lower at 142.31 yen at 1421 ET/1821 GMT.

Japan to Buy Yen

Japanese 10,000 yen banknotes are arranged for a photograph in Kawasaki City, Kanagawa Prefecture, Japan, on Tuesday, July.9, 2013. Photographer: Akio Kon/ Bloomberg

It had traded more than 1% higher on the BOJ’s decision to stick to its super-loose policy stance, bucking a global tide of monetary tightening by central banks fighting soaring inflation.

“We have taken decisive action,” vice finance minister for international affairs Masato Kanda told reporters, responding in the affirmative when asked if that meant intervention.

Analysts, however, doubted whether the move would halt the yen’s prolonged slide for long.

The currency has depreciated nearly 20% this year, sinking to 24-year lows, largely as aggressive U.S. interest rate hikes push the dollar higher.

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Cryptocurrency

How to Import a Watch Address on Trust Wallet, Exclusive Update

Watch Address Trust Wallet, How to Import a Watch Address in Trust Wallet. This can be a great way to keep an eye on your funds in any wallet, but especially a cold wallet while still keeping the private keys off the internet.

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Watch Address Trust Wallet

What is a Watch Address?

A Watch Address is basically the receiving address or wallet address. Importing any supported Cryptocurrency address will allow you to view the tokens and collectibles, as well as transactions associated with the said address. When importing your address, you cannot do any transactions with the wallet.

This can be a great way to keep an eye on your funds in any wallet, but especially a cold wallet while still keeping the private keys off the internet.

Watch Address Image

Watch Address Trust Wallet

What Watch Address Can Do?

  • You can view that address’ transaction history
  • You can view the volume and price of tokens associated with that address
  • You can send tokens to that address

What Watch Address Cannot Do?

  • You cannot send funds from that address to exchange (like Binance
  • You cannot send funds from that address to another wallet
  • You cannot sign smart contracts
  • You cannot use the DApp browser

Importing a Watch Address on Trust Wallet

What is Trust Wallet?

Trust Wallet is an easy-to-use, actual multi-chain noncustodial wallet, which allows you to store and manage over 6 million crypto assets 528 including NFTs across 68+ blockchains—no more storing your assets 528 across multiple custody wallets or exchanges! You’ll have peace of mind knowing all your assets are in one safe place.

Your private keys are stored on your device and your assets 528 on-chain meaning you are in full control at all times. Trust Wallet gives you the ability to natively buy, swap, and stake 98 your favorite crypto without having to leave the app and also connect to dApps with the in-built DApp 165 browser.

Trust Wallet is used by over 50 million people worldwide!

Don’t have Trust Wallet yet? Download here: Trust Wallet App

Importing Wallet Address in Trust Wallet

We will now proceed to the process of importing a wallet address for viewing purposes. In this scenario, we will choose to Import an Ethereum wallet.

How to Access Wallet Import Screen

  1. Open Trust Wallet and then tap on Settings.
  2. In the Settings screen, you will find here Wallets.
  3. Tap on the “+” sign on the upper right to access the Import Screen. Tap on Ethereum. We are choosing Ethereum here, but of course, you can import any wallet within the supported chains seen on the import screen.
Watch Address Trust Wallet

Type the Wallet Address on the Address tab of the Import Ethereum screen. Alternatively, you can scan the QR code(if you have one). Put a Name so that you can easily recognize the wallet. Once you are done typing, just tap on Import.

Don’t have Trust Wallet yet? Download here: Trust Wallet App

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Cryptocurrency

BNB Chain Network Upgrade, Trust Wallet and Binance will Support the Upcoming Upgrade on BNB Chain Epic

BNB Chain network. BNB Chain network upgrade allows for more computing power on BNB Beacon Chain for security and governance. BNB smart chain. BNB

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BNB Chain network upgrade

BNB Chain network

This upgrade allows for more computing power on BNB Beacon Chain for security and governance. With this upgrade, DEX features are removed from BNB Beacon Chain, with the DEX features remaining on BNB Smart Chain.

BNB Chain network Upgrade

For Trust Wallet User

Trust Wallet will support the upcoming BNB Chain network upgrade. This will occur at the block height of 264,000,000, estimated on September 2, 2022, at approximately 6:00 UTC.

For Trust Wallet

  • This will mean we are removing the exchange tab functionality for BNB Beacon Chain, which will not be present in the app for placing new orders.

Please note:

Swaps of BNB will still be available.

For more info, click here

For Binance Users

Binance will support the BNB Beacon Chain (BEP2) and Beam (BEAM) network upgrades and hard forks.

  • The BNB Beacon Chain (BEP2) network upgrade and hard fork will take place at the BNB Beacon Chain block height of 264,000,000, or approximately at 2022-09-02 06:00 (UTC). Deposits and withdrawals on the BNB Beacon Chain (BEP2) will be suspended starting from approximately 2022-09-02 05:00 (UTC).
  • The Beam (BEAM) network upgrade and hard fork will take place at the Beam mainnet block height of 1,920,000, or approximately at 2022-09-02 09:00 (UTC) . Deposits and withdrawals for BEAM will be suspended approximately starting from 2022-09-02 08:00 (UTC).

Please note:

  • The trading of tokens available on BNB Beacon Chain (BEP2) and BEAM network will not be affected during the network upgrades and hard forks.
  • The BNB Beacon Chain (BEP2) network upgrade and hard fork will take place at the BNB Beacon Chain block height of 264,000,000. The estimated time is for users’ reference only.
  • The Beam (BEAM) network upgrade and hard fork will take place at the Beam mainnet block height of 1,920,000. The estimated time is for users’ reference only.
  • Binance will handle all technical requirements involved for all users.
  • The BNB Beacon Chain (BEP2) and Beam (BEAM) network upgrades and hard forks will not result in new tokens being created.
  • We will reopen deposits and withdrawals for BNB Beacon Chain (BEP2) and Beam (BEAM) network once we deem the upgraded networks to be stable, and we will not notify users in a further announcement.
  • Where any discrepancy arises between the translated versions and the original English version, the English version shall prevail.

For more information on the network upgrades and hard forks, please refer to the following:

BNB Beacon Chain Mainnet Godel Upgrade

Beam Hard Fork Announcement

Read More on BNB Chain network Upgrade, click here

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