Dear community members,
In this article, I shall reveal my winning strategies used in fundamental analysis contest. I hope you will also gain some insights on approaching trading from fundamental analysis perspective.I am a regular participant in the Fundamental Analysis contest. I have won many prizes. You can see my contest performance below.
So, let's begin !!!
(1) Knowing the big picture from current bias of central banks
My first strategy is based on deciphering current bias of central banks which will help you in correctly assessing the outcome of many economic indicators.
But firstly, let us understand the impact of central banks on currency exchange rates. Currency exchange & interest rates are highly correlated to each other. By controlling interest rates, central banks can control both inflation & exchange rate levels. Higher interest rates offer lenders a higher return relative to other economies of the world. Therefore, higher interest rates attract external foreign capital & cause the currency exchange rate to rise. The opposite relationship exists for decreasing interest rates - that is, lower interest rates tend to decrease exchange rates due to flight of externa…
Read article
Translate to English Show original