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The Goal of Fundamental Analysis in Forex Trading
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[QUOTE="Holicent, post: 260290, member: 76163"] Fundamental analysis is a process of studying the economic and financial factors that affect a particular currency pair. It can be done by using charts, news, and analyst opinion. Fundamental analysis is based on the idea that there are certain rules in place that dictate the behavior of currencies (or any other market). The goal of fundamental analysis is to identify these rules and use them to your advantage when trading. By doing so, you will be able to make more money out of your trades than someone who doesn't understand why certain events happen in the markets. Fundamental analysis is based on the idea that all markets move in predictable patterns. If you know how a market typically reacts to different events, then you can anticipate what will happen as soon as those events occur. For example, if you know that most people who buy stocks do so because they believe that the price will go up over time (they think of it as an investment), then you can use this knowledge to predict when prices will go up and down and profit from this information. [/QUOTE]
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The Goal of Fundamental Analysis in Forex Trading
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