As many traders do is perform technical analysis on a daily basis. When in fact, this is not good. Because of it fundamentally very important. That Why is fundamentally more important than Technical analysis. This can be evidenced in various case studies that have occurred. Every novice trader may not be as experienced traders and already know some of the happenings in the trade. Referring to this, the novice traders expected more emphasis on studying rather than fundamental analysis technical analysis. Learn fundamental analysis is not easy. We must understand some of the language of the economy that we can get through the economic news across multiple sites as well as on some news through television.
What is fundamental analysis
Fundamental analysis is a way to predict currency movements in a country with analyzing the economic development of these countries, economic policy, as well as news regarding all matters affecting the economy inefficient provision in question.
Why should use fundamental analysis
Such as the definitions in the described above, fundamental analysis can give you a picture of it early. About price movements will be strengthened or weakened. The bottom line that’s all. Well after we know the direction of its movement, then we determine the best positions open. Well, this is where the role of the technical fundamentals and may be combined a very steady strategy shortly.
Why is fundamentally more important than Technical analysis
In accordance with the author’s own natural experience, the movement of a currency in forex it is very erratic and very hard we guess the direction where it actually is. If we know the actual direction for a period of 1 month to the fore, surely we will not need to worry anymore will the presence of floating or loss. So the first thing we should know is where the actual trading price direction. Well as for knowing the direction of prices for a long period of time, it just can be analyzed using fundamental analysis. If it relies solely on technical analysis, of course, we can not know for sure where the actual price will be brought by the market.
In addition to the above issue, trading fundamental analysis first will make us better prepared for a large price movement – a magnitude. So the risk of loss can be minimized. Maybe this strategy can be applied in conjunction with the strategy of ours. Origin not to get the opposite analysis. If this occurs, the better we do not wait until the analysis of trading and it brings true.