The Basics – Fundamental Analysis (LonghornFX)

The Basics – Fundamental Analysis. The world seems ever-changing but these past few years have demonstrated many unpredictable and erratic market movements. With emerging technology and innovative companies popping up regularly, knowing how to analyze the markets from a fundamental perspective, can greatly aide your trading strategies. Let’s take a closer look at a vital trading tool; Fundamental analysis.

What is Fundamental Analysis?

All companies are subject to filing reports and statistics relating to the ongoing health of their enterprises. These numbers can assist traders in calculating their open and closing prices, profit margins and portfolio risk.

This method measures a company or stock’s intrinsic value by assessing macroeconomic factors like global economic stability, geopolitical events, natural disasters and war; right down to microeconomics such as how fast the company is growing, how they reinvest their profits, who is managing it and how confident employee and investors sentiment towards the company is.

How to Execute Fundamental Analysis:

While there is always something going on in the world that cannot be predicted with 100% accuracy, there are several methods and tools available to assist you with your fundamental analysis:

• Read the news
– Subscribe to leading journalist platforms, major news outlets and any
financially relevant newsletter that can assist you, especially breaking news stories.

• Learn how to valuate a company
– Study their EPS, Debt Ratio, EBITDA, Historical dividends etc.

• Follow social media platforms for the relevant companies
– Telegram, Twitter, Instagram, Facebook, LinkedIn, Reddit, Discord and more

• Learn the lingo
– Every industry comes with its unique set of terminology, stay informed by creating a glossary for yourself to refer back to later

• Regularly study an economic calendar
– This is a vital tool for fundamental analysis and should always be taken advantage of. A quick internet search will provide multiple sites offering calendars in varying detail. Choose the one that works best for your trading strategies

Risk & Fundamental Analysis

Here are six ways you could lower your risk exposure to your trading portfolio. These are only a handful of suggestions, make sure to apply the correct risk management strategy relevant to your investment portfolio.

Six Ways to Reduce Risk

• Hedge your bets by investing in uncorrelated assets
• Trade CFDs to benefit from volatility by taking short or long positions.
• Build a diversified portfolio
• Think global economies, don’t keep it local only
• Do detailed research and invest in value
• Keep a trading journal of all your investments, their successes, changes in trends, upcoming announcements and investor sentiments, then adjust your portfolio accordingly.

Looking to Trade CFDs?

We have paired this offer with LonghornFX, a global leader in CFD/ECN Brokers, offering traders outstanding trading conditions, a user-friendly interface and impressive leverage of up to 1:500. Learn2Trade understands how important order execution speed is, that’s why we offer free signals for an ENTIRE YEAR, when you sign up with our revolutionary partner broker, LonghornFX.

What platform does LonghornFX use?

LonghornFX partners with the widely acclaimed, award-winning MetaTrader4 terminal. MetaTrader4 is an advanced trading system, designed for contemporary, professional and beginner traders. The internationally-awarded platform offers various trading tools such as technical analysis, trading signals as well as the use of electronic assistants also known as ‘Bots’.

Clients are able to trade anywhere, any time. MT4 is compatible with web browsers, laptops, desktops and mobile devices and is Android friendly. Take advantage of rapid order executions and over 2000 free indicators with this prudent partnership.

Why Choose LonghornFX?

LonghornFX has lightning-fast, reliable and instant order executions. The revolutionary broker also offers some of the tightest spreads available and well over 170 assets to invest in. Choose professionalism and benefit from trading on the award-winning MT4 platform with no dealing desk; all orders are processed straight through an aggregator; thus, you have instant order execution speeds and the tightest spreads available.

LonghornFX and Learn2Trade

Stay on top of your investments and never miss an opportunity to enter a trade at the price you want; or exit quickly when the price turns. Not only do we offer free signals, but with Learn 2 Trade you have access to comprehensive trading guides, breaking market and investment news and all the tools required to start your trading journey with your strongest foot forward.

Simply sign up with LonghornFX, make your first deposit of $250 and you can then immediately feel the reward of trading on a large range of stocks, forex, indices, metals, commodities, cryptocurrencies and futures with free signals for an entire year from Learn 2 Trade. Should you require any assistance while setting up your account or during your trading activity, LonghornFX offers their customers 24/7 support via Live Chat, Email or a call-back.