Education

• Print
• E-Mail

The number of fundamentals is enormous, adding

to the difficulty of trying to interpret what they mean even when

you do have the most recent reliable data. Every market is affected

by fundamentals in related markets, putting an emphasis on

intermarket analysis, but every market also has its own set of

fundamentals.

For most traders, perhaps the most useful

advice on fundamentals is to know when the key known events –

reports, news releases, elections, etc. – are going to occur. You

can’t predict the surprises – tsunamis, assassinations, etc. – but

for those events that are scheduled on a calendar, you should be

aware of the time when they could cause a price ripple, even though

you rely on technical analysis for your trading decisions. It would

be a bonus to know something about the history behind the event and

have an idea about what traders are anticipating on an upcoming

announcement.

This tutorial provides an overview of

fundamentals, but a trader involved in a specific market should find

other sources to study the fundamentals for that market in more

detail.