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Fundamental Analysis in 60 Seconds With City Index Singapore
"Charts Are Great for Predicting the Past"
By: Marketwired .
Feb. 11, 2013 08:00 PM
SINGAPORE -- (Marketwire) -- 02/11/13 -- Whatever type of trader you are, it's crucial to gain as wide and accurate a picture as possible before opening a position in your chosen market.
Where technical analysis looks at price movement and patterns in the charts, fundamental analysts aim to ascertain the overall value of a market by looking at the surrounding factors.
This article aims to give you a 60-second brief on the basics of fundamental analysis.
If a company earns more than it originally projected, its market price is likely to rise. Once these earnings figures are released to the public, positions can be opened to take advantage of any uptrend that emerges. Higher earnings figures mean a higher intrinsic value of a market which is of interest to fundamental investors.
If a country announces higher than expected unemployment figures, market prices typically take a tumble. If a Government announces measures that may affect GDP, spending, interest rates or other economic factors, prices may also make big moves.
Fundamental analysts keep thoroughly up to date with broader global commercial events, and often use them in conjunction with basic technical analysis to ensure they're opening the right positions.
Unfortunately, there are times when the market moves against us. Never invest more than you can afford to lose, employ tight risk management and never let your emotions get the better of you when trading CFDs or forex.
CFDs and margined Forex contracts are leveraged products and may result in losses exceeding your initial outlay.
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