Welcome to Day 3 of the 10 days of trading course from BlackBull Markets.
In day 2 of this course, we introduced you to technical analysis and its importance in understanding the market. But technical analysis is not the only type of analysis that traders use to follow the markets.
Today we will be discussing the next most important analysis traders use, called ‘fundamental analysis’. Fundamental analysis is frequently used in combination with technical analysis when analysing the markets.
What is fundamental analysis?
Fundamental analysis requires staying up to date about significant economic and financial events and determining how they can affect the price of a particular assets.
Every week, there are a number of scheduled economic events, including:
· Public speeches from Central bank officials.
· Economic reports pertaining to unemployment, inflation, and GDP.
· Earning reports from publicly-traded companies.
In addition to scheduled events, you should watch out for surprise events such as severe weather events that can affect the price of coffee, wheat, and other crops, and wars that can affect the price of crude oil and gold, among other assets.