Common Mistakes in Foreign Exchange Fundamental Analysis

Those who are new to foreign exchange trading usually understand that one of the analytical methods is the so-called fundamental analysis, which is based on the collection, aggregation, and research of various fundamental information in an attempt to draw a conclusion that is either overweight or bearish.

Frankly, there may be some biases in this approach itself.

You know, it's hard for a person to grasp true and comprehensive fundamental information, whether public or confidential. Many people are like the blind men in the ancient fable "The Blind Man Touches the Elephant" - touching the belly and thinking that the elephant is a wall, touching the thigh and thinking that the elephant is a pillar, touching the tail and thinking that the elephant is a rope. When you see one or a few bullish information, you feel that the market is going to rise; when you see a bearish information, you feel that the market is going to fall. This approach lacks a comprehensive view and overall analysis.

In fact, even if you have all the information, how can you objectively and rigorously come to a clear trend conclusion in the face of information intertwined with multiple and empty factors?

The more common problem is that many people like to use information in the public media as the material for fundamental analysis, but they are unaware that this information has often been digested by the market and reflected in the market trend.

The long and short sides face the same fundamentals, but they understand them differently - the elephant is still the elephant, but the part you touch is different, and the conclusion is different. This is one of the common misunderstandings of fundamental analysis.

Another myth is that the overall movement of the market is not entirely determined by the bullish or bearish fundamentals, but by how the core forces that dominate the market understand and use this information. In other words, in a trading platform like Depp, it doesn't matter whether we are bullish or bearish, what matters is how the market forces interpret and apply this information. This isforeign exchange marketThe essence of operation.