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Fundamental Analysis

Fundamental Analysis Online Trading

How to use fundamental analysis

It is essential to grasp the difference between what technical and online trading fundamental analysis can offer traders. The primary goal of online fundamental analysis is news-based market data, when technical analysis generally disregards them and takes a stake in reading charts and indicators.

Fundamental analysis online trading factors in all the information from internal and external sources about the asset. When we talk about shares of a company we take into account all the new products and profit results it presents to the public, as well as controversial gossip from company's employees. For example, let us take AAPL shares (Apple). According to the latest news feed we can see an upcoming release of much expected Iphone and other gadgets. If we look at historical data, the last day before such release we can see a strong upward trend of the stock. This trend has never been broken and based on this, and positive profit data, which are expected, we can easily place an UP investment for 12 hours or a day on the date before the release.

The same is true for currency pairs, commodities or indices where you have a combination of variables that are harder to combine, but if you are good at seeing a general picture, this may serve you well in your investing efforts. With online fundamental analysis  you should look into interest rates, employment data, economic and trade growth and geopolitical events that influence financial markets.

The most popular and traders' favorite is the much traded EUR/USD currency pair. It is known for most trades and strong trend record. When you look at the economic calendar, you can see positive upcoming data for Eurozone and negative information from US Central Bank that is thinking of lowering interest rates to help the stagnant economy. For this reason upon official release of such data we should act accordingly, meaning to place an UP trade to support the stronger Euro against Dollar.

Online Fundamental Analysis 

For a single trader it is virtually impossible to know all of that kind of data or to remember it like Warren Buffet, but in fundamental analysis online trading you can focus on several key currency pairs or stocks that in the long run can give you lucid profit.

Finally, given the large scale of impact new have on exchange rate and stock prices it is vital to be aware of all upcoming planned news events as well as following such companies like Bloomberg for any outstanding or unexpected events. With their help you can place a trade on the very outset of a trend and gain a definite profit up to 90% depending on your brokerage company's trading conditions. All data on such web-sites is showing up immediately and can be trusted. These are the primary qualities that you need to look for when making profitable investments.