Tuesday, 17 September 2013

Fundamental Analysis

Hi,

   Fundamental analysis is the methodical analysis of a collection of relevant market information within a specific time frame in order to determine the intrinsic value of the market which is used to compare against actual market prices so as to derive a conclusion on the market.
This is the biggest advantages which establishes the cause and effect using scientific and rigorous analysis.

The main reasons are:
1) Its practical application requires traders to have an extremely high level of professional knowlegde.

2) It requires an extensive collection of real-time information and the establishment of a comprehensive database.

3) The biggest setback of fundamental analysis is that it is not quantifiable.
Fundamental analysis offers a comprehensive view of the market and a glimpse of the possible trends.

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