BASIC AND TECHNICAL ANALYSIS OF TRADING

As a good trader to determine how the price will behave, will definitely take into account and analyze all these factors. And also definitely will understand how they can affect the market. Who understands technical and fundamental analysis and who can make correct forecasts only traders. Usually, these two methods have their own advantages. You need to learn both methods then you can choose which type of analysis is more suitable for you.

Fundamental analysis

What is meant by fundamental analysis is the analysis of geopolitical and natural factors, headlines and statistics on certain industries, bank actions central, and government regulators.

Basic parameters of fundamental analysis

The basis of fundamental analysis is divided into several parts, including the following:

Comparison method
Induction and deduction
correlation etode
Group and summarize
Seasonal

Technical analysis

Technical analysis is mainly the analysis of chart patterns that show the market situation at various intervals in the past. Based on this, an estimate is made about at what point the market situation may recur.

The following are the main figures for technical analysis

Head and Shoulders
Triple Top/Triple Bottom
Triangles
Pennant/Flag
Rounded Top/Rounded Bottom
Butterfly Gartley
Diamond (Rhombus)

Analysis of risks

Risk analysis is an integral part of trading that you must underline. You have to decide on the amount of money you are ready to spend and the risks that you can accept.

You can do this by working with multiple assets and using a variety of trading instruments. For example, you can open one option for cryptocurrency pairs and one for stocks.

You should pay attention to the number of options opened. Use no more than 3-5% of your capital in one trade. Increase the number of trades You gradually. With each profitable trade, your deposit grows. This means that the number of transactions should also grow.