Fundamental analysis is the type of analysis, which is mostly preferred by long-term traders. The key point of this methodology is to base the forecast solely on economic and political outlooks in the world.
Following from the above, the traders study the latest economic events and consequent news releases which may potentially cause a scalable effect on the world economy. Examples of such events can be certain public protests, information about radical changes in the economies of different countries etc.
In the process of fundamental analysis, the trader should not only look at facts, but also at facts in the making – expectations and various gossip surrounding the situation in question.
As such, this particular type of analysis is based on both, external and internal factors, influencing the world economic conditions. The main information sources for this type of analysis are financial news, government and corporate reports, economic calendars of scheduled events and, of course, factual reports about the economic performance of the countries in question, and world as a whole.
Attention! Any information provided herein does not guarantee a positive trading result. Therefore, by using any of the contents in your trading activities, you take full responsibility for any result that may come from it. Please bear in mind, that forecasts are just that – forecasts, implying a possible significant error margin. Use the information provided at your own risk!