Fundamental analysis. Strategy and tactics

Fundamental analysis is a more multifaceted approach than it may seem at first glance. Assessment of the market situation on the basis of the financial, economic and political news, only one of the available trader strategies. In this article we will list all the available methods of market participants by using fundamental analysis.

Short-term strategy

This method involves the use of a trader in the data obtained from news reports. All available data are compared with the expectations of the market participants and, based on this comparison to draw definitive conclusions. Short term method is good for trading during sharp movements the charts and is actively used for intraday trading.

Typically, the reason for the transaction by using short-term strategy is taken separately news or macroeconomic indicators . The decision to open the position to be taken at lightning speed. Such orders are closed for a few hours or even minutes. Technical analysis for short-term strategy is not working.

Long-term strategy

This approach involves identifying the relationships between various macroeconomic indicators and determining their effect on each other. Traders using in their work this method prefer to comparative analysis and evaluation of the financial and economic situation in the various countries of the world. All forecasts are designed to identify long-term trends, trends and changes in the fundamental factors in the long term. Open positions are "in play" for a long period of time. Optimal points for entry and exit are determined on the basis of technical analysis methods.

Method of playing on the expectations of market participants and unconfirmed rumor is based on the open position at the time of birth of the next gossip or speculation and after the closing of the transaction confirmation or refutation of the newly-made hypothesis.

Another method is to identify the code name "fixed ideas." The basis of this method is the definition of an economic or political events, has the strongest impact on the global financial markets. All additional news are considered only as factors strengthen or weaken the effect of the key processes.