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How to analyze fundamentals in foreign exchange trading
How do we use this fundamental analysis in foreign exchange transactions? Let Chase Financial show you how we analyze fundamental issues. The application of fundamental analysis in foreign exchange trading does not require professional knowledge like technical analysis. Investors only need to know the price trend from the past to the present, plus some auxiliary technical indicators, such as RSI, to decide whether to enter the market. Therefore, many investors who know little about the operation of precious metals market choose to learn directly how to use technical analysis to make trading decisions, while ignoring the importance of basic analysis. In fact, basic analysis, just like internal horse stance just like the stance of martial arts practitioners, is a basic necessity for practicing martial arts, lacking basic skills, but without flexible improvisation skills. Once on the battlefield, nature is a debacle, and it is impossible to stand among the winners. As for technical analysis, it is like the moves performed by martial artists, but these moves will only become useless gestures if they are not matched with basic skills. When you meet a strong enemy for a long time, you will naturally be overwhelmed and easily knocked down. Even in terms of technical analysis itself, this analysis method seems very simple, but it is difficult to master. Many investors can use half a bucket of water to describe the application of technical analysis. If these investors don't have a good basic analysis, their understanding of technical analysis is half a bucket of water. Once they really fight the enemy in the financial market, defeat is definitely an inevitable result. Personally, investors who are not familiar with the basic analysis of foreign exchange transactions, but are not interested in studying how the basic analysis can increase profit opportunities for their portfolios, should give up formulating medium-and long-term investment strategies, and should make flexible short-term speculation with the help of technical analysis (such as five-minute charts and hourly charts) and learn more short-term speculation skills. Because the strength of technical analysis is to provide opportunities for short-term speculators to enter the market, investors have abandoned the strength of technical analysis and insisted on technical analysis as a medium-and long-term trading decision, ignoring the importance of basic analysis. Even if these investors succeed in making money, they can only say that they are lucky and deserve to lose. Investors who participate in gold spot trading attach great importance to technical analysis, because gold spot trading is essentially a short-term transaction, and fundamental analysis or economic data is far less important than technical analysis; Therefore, if investors participate in gold trading, if they insist on using technical analysis with good short-term speculation skills to make trading decisions and give up the investment mentality of being a medium-long-term investor, even if the understanding of basic analysis is only half a bucket of water, I think the problem is not big, just earning hard money, because short-term speculators need to work very hard to enter the market.