Is it important to face foreign exchange trading?
It is not advisable to rely solely on fundamental analysis for foreign exchange trading, but it is also undeniable that foreign exchange trading cannot be separated from the market, so it is essential to face foreign exchange transactions.
1. Fundamentality is one of the important factors that cause market price fluctuations. The role of fundamentals is reflected in the impact of market capital flows, but it does not completely determine its flow, the most direct of which is the impact of market expectations on capital flows. It may be the same thing, the market has a different understanding, which causes a difference in the flow of funds. Therefore, many market news, including the Fed rate hike is good for the dollar, investors must pay attention to this.
2. The importance of fundamental news is reflected in how the market understands and treats it. Different understandings have different results and different levels of influence. These can't be done through fundamental analysis in a short time, and investors can use technical analysis (that is, charts) – this is a direct reflection of capital flows and The price changes to better understand and understand the changes in market prices.
3. Any price change is a direct result of the flow of funds. Without the flow of funds, there will be no price changes. These fundamental factors are combined to influence the market and affect the expectations of some investors to invest and participate in this market. The combined expectations of these over 100 million market-investing investors (holding positions) will have an impact on market price movements and reflect the market's main capital flows.