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Fundamental Analysis

Risk Management

What is Fundamental Analysis

Fundamental analysis is a way to determine an asset's value by looking at underlying, real world factors as opposed to the price. This can be done with companies, industries, or economies. With this analysis, traders look into the revenue, expenses, assets, liabilities, and all available financial information on a company to decide the true or future value of its stock. This is also a way to try to find out a stock's "intrinsic value" (the actual worth of the stock) as opposed to its selling or buying price.

 

In addition to looking into a company, fundamental analysis includes looking at a bigger picture of global events. Things like major financial announcements, earnings reports, even wars and political agreements, are all factors that can affect the market as a whole and specific assets. It is crucial for investors to stay updated on events that affect the market, which you can find in Stockpair's economic calendar.

 

 

Understanding the Economic Calendar

The economic calendar provides us with the following information

Currency- This tells us the currency correlated to and affected by the event

Message – What the announcement will be

Impact – This is a big factor in assessing events. An event can have high, medium, and low impact on the market. 

Actual – The figures released in the event. Updates after release

Forecast – This tells us what experts believe the figures will be

Previous – The figures last time this event occurred.

When examining our economic calendar, we can assess events by filtering only those that are relevant to us. In the settings, we can select to only see events that have a certain level of impact, that apply to certain currencies, or that occur on a certain day 

 

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