Fundamental analysis of the market: benefits for a novice trader | FXGtrade

 First, we give a definition of fundamental analysis. This is such a specific kind of analysis, using which the change in asset prices is determined by taking into account political, economic, social and similar generally valid factors affecting the ability to buy and offer.


This type of analysis will allow you to trace the movement of prices in the market in the long term. The political and economic situation, the social factor, must undoubtedly be taken into account when forecasting the state of the foreign exchange market.


As you can guess, the type of analysis we are considering is directly related to the macroeconomic indicators affecting the economic state of the country as a whole. These indicators include: GDP, industrial production, industrial price index, unemployment, inflation rate, interest rate, trade and balance of payments and many others.


Global analysis is considered quite complex, as some indicators may be in contradictory states, and others simply can not be compared. This type of analysis requires the analyst to understand all the laws of the financial market and the correct operation of the available data. Such analysts are, for example, in Fxgtrade.


Also, in the global analysis, it is necessary to follow the change in the stock indices reflecting the economic situation of the big business of the country. Stock indices depend on the value of shares of leading companies of a particular state.

 At the company FXGTrade analysis is very popular in professional traders

A mediocre trader will have minimal information with a fundamental analysis. The most minimal knowledge is that: the first currency will increase in relation to the other in the event that the homeland of the first can boast of higher rates of economic development. Accordingly, the interest rate of the National Bank of the first country will be higher.


Unfortunately, surprises can happen and happen, such as, for example, natural cataclysms, pulling the economy of the affected country to the bottom.


For short-term forecasting, fundamental analysis is not useful (exception - economic news). Fundamental analysis allows us to consider the overall picture as a whole, estimating the global potential currency movement.


You can learn the global analysis with the broker Fxgtrade, the reviews of which make it clear that he is strong in teaching trading.