Connect with us

What is Fundamental Analysis




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 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. Required fields are marked *


Why Do Successful People in Intraday Trading Don’t Reveal their Trading Strategy?

Intraday Trading Strategy. What is intraday trading and how does it work? Is it profitable? intraday for beginners. intraday trading means



Intraday Trading

what is the intraday trading

Intraday trading refers to buying and selling stocks on the same day before the market closes. intraday trading can also be profitable.

intraday trading

Three months back, I prepared an online course, “Trade Like Crazy,” consisting of 10 profitable intraday systems that are backtested against 10-year historical bank nifty data.

Before making it public, I thought it was better to review these systems with a coding specialist who is also a trader.

Hence, I asked one of my friends to review these systems in detail.

After seeing all the systems, he was shocked and said, “Indra, you have shared all the secrets; I suggest not disclosing everything.

We had a lengthy discussion after that, and I convinced him about my plans.

Even if I share an excellent profitable intraday trading system (I have already done it), many people will not be convinced of its logic or result.

Because they have a different thought process in their mind, the only way to get rid of that process is by backtesting the system (which I have shared) with the historical data in intraday trading.

Intraday trading means

Intraday Trading Strategy

But most people are lazy enough to do the work, and hence they will not be able to follow the system in intraday trading.

Some people might have the same ideas compared to my system. But they would have watched other methods in a YouTube video or read about some strategies in a book. These people face a tough time shortlisting the systems, and hence they will not be able to follow my system as it is in intraday trading.

Very few people will understand the importance and work behind a system, and they are determined to implement the system as it is. These people will be rewarded in the long run.

Sharing of Intraday Trading Strategy

So, I don’t hide any secrets, and I have shared all the profitable day trading systems

However, that doesn’t mean all successful day traders share their secrets. I know many successful day traders who are not even ready for a casual discussion.

Besides, there are a few traders who trade some systems but teach some other concepts. I don’t know the exact reason (as they have not shared).

A trading system will indeed lose its edge if many traders start using the same (ex – 9.20 straddle and strangle in India). But with fine-tuning, anyone can make it profitable again, or a real trader will easily re-invest in another profitable system with ease.

Is Intraday Trading Profitable

It may not be at first, but with a good deal of patience and research, it can be. Never wait to generate huge profits in just a single trade

What are the best ways to make consistent profit intraday?

  1. Use a 15-minute Candlestick Chart.
  2. The first 2 Candlesticks after opening should be green for taking a long position.
  3. Take position only after 10.00 AM.
  4. After the formation of two red candlesticks takes a position.
  5. Check the first Candlestick.
  6. Note high and low.
  7. Note the difference.
  8. Multiply by Fibonacci Number 2.681
  9. Add with high and deduct from low.
  10. Put the target at the derived high and stop loss at the derived low of point 9.
  11. Example for today Reliance made continuous 3 green candlesticks in the 15-minute chart. First Candlestick high-1400 low-1390, Difference 10, Multiply by 2.681=27. Adding and subtracting with high, low derived high 1427, derived low 1363. After the formation of two red candlesticks takes position anywhere between 10.30 to 10.45 AM for a target of 1427 and stop-loss of 1363. If both do not hit the exit at 3 PM. Today 4/7/2017 Reliance High-1427.1, low 1389.
  12. Don’t follow blindly, do paper trade for at least 3 months for every working day then try with real money.

What should I know before trying intraday trading?

  • Never ever take markets for granted, This means suppose you are taking a target of making some 10k every day with your 10lacs capital. Initially, if you even get this done for yourself, Don’t make it in mind that Markets are your slave and you will daily make it out of markets. This is one of those mistakes, Which are commonly committed by day traders and they end up blowing up their trading accounts.
  • The mistake that many traders make is, They start as Intraday traders, But if they get stuck in a position, They soon become either swing traders or an investor. Never do that, Always decide before entering a trade. If the trade is decided to be intraday at the time of placing it, It should always be intraday one with strict disciplinary action implied in it.
  • Never ever take leveraged positions, It means if you have 10lacs in your account, Don’t go for trading with 20lacs in equity, Over trading usually results in losses at the end. Believe me, I am saying this out of my personal experience. However, Leverage taken to sell options intraday is an exception to the point made.
  • Always stick to your strategy, Don’t just change it daily. Change your strategy and attitude if you are not successful over a period of time.
  • For being A successful intraday trader, One needs to be super active during market hours, If you trading in your part-time business, My advice is please don’t indulge in this business. This trading business demands 100% loyalty like women, If you cannot be 100% loyal to them, Better stay away.
  • Let me tell you, Stock markets are an inhuman business Because one will only make money if another is losing money. So To make another trade and lose money, You need to be the Best among the crowd.
  • Just learn to cut losses on time, I can assure you this, no one can stop you from minting money in stock markets by trading. Losses are like Cancer my friend, Dat should be excreted out of your system as soon as possible before it becomes Deadly for a trader.
  • Respect price, Respect screen, Respect your business, and fruits will soon come out in tons. If the price of a stock is quoted at ₹200, Believe it, that is the reality, Don’t go and argue with it ever.

This is very much achievable my friend, All one need is to respect markets as we do to our parents, Listen to what markets are saying, Rather than make the markets listen to what we believe.

1% of traders will always be successful in trading, So you cannot expect a positive reply from 100% of traders for trading.

Use stop losses effectively

A stop loss is an automated order that lets a trader sell or buys a stock when it touches a set price. It stops the trader from being overwhelmed under multiple open trading options. It also wards off severe loss.

When you are buying stock, a stop loss order should have a trigger price set just below the latest price bar low. Even if the price plunges below it, you will be able to exit without incurring a huge loss. When you are short selling, the stop loss order should have a trigger price just above the recent price bar high.

Keep a realistic risk-to-reward ratio

Don’t gamble with your wealth. As a rule, the acceptable risk-to-reward ratio is 3:1. Keep to this rule so that you do not get carried away and incur huge losses.

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

Step Index

Step Index Strategy Update in 2023

Step Index Strategy will assist Step Index traders on how to scalp quick profits when trading Step index. step index scalper, Step Index traders scalping. step index strategy. step index free signals. best strategy to trade step index. step index trading strategy pdf.



Step Index Strategy

Step Index Strategy

will assist Step Index traders on how to scalp quick profits when trading Step index. This strategy is a combination of three common Meta Trader 5 indicators. Basically, the indicators are Moving averages, Ichimoku Kinko Hyo, and MACD. The ideal time frame for this strategy is 15 mins time frame. (Please try this strategy on a demo account before going live). (Binary dot com also known as Deriv dot com is the only broker that has Step Index). Sign up via this link to open a Step Index trading account.

Contact WhatsApp +2349068154090 or on Telegram for more info.

How To Setup The Indicators

Ichimoku Kinko Hyo indicator and moving average are both installed on the main MT5 window with the following settings:

For Nasdaq 100 Index Strategy: READ MORE

Step Index Strategy

When the price crosses above the Blue and Red moving averages, and ticks higher forming new bullish candles, that is a BUY signal. Buy confirmation is when the Red and Blue moving averages cross above the Ichimoku Kinko Hyo. Alternatively, the Sell signal occurs when the price crosses below the Blue and Red moving averages, and ticks lower forming new bearish candles. Sell confirmation is when the Red and Blue moving averages cross below the Ichimoku Kinko Hyo. Indicator Window 1 MACD with moving average indicator is installed on Indicator Window 1 with the following settings:

Buy Signal occurs whenever the Red moving average line cross upon the zero MACD level. Sell signal occurs whenever the Red moving average line cross down on the zero MACD level.

Take Profit and Stop Loss Levels; When going long, place your take profit at the nearest resistance. Stop loss for your buy trade may be placed below the nearest support. For a short (sell) trade, the place takes profit at the nearest support. Stop loss for the sell trades may be above the nearest resistance.


Step Index Strategy

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


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



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.


  • 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


​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.



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


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


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



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.

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