Whats the best way to analyse stock/forex?

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Old Sep 25, 2010, 6:51pm   #1
Joined Jan 2010
Whats the best way to analyse stock/forex?

How do I analyse a stock fundamental for the future?

I frequently see analysis's on CNBC, Bloomberg etc making predictions about the future of a stock but how do i make such predictions? Where can i get the data concerning a stock or how do i know which data will effect a stock?

Example:

I want to look at data such as CPI or other data and draw a conclusion from it and look at stock which will do well from this (or not well) but i dont have an idea what effects a stock in the future. Where/How do economists get the information and what should I be looking at?

I want to start a strategy that involves fundamental data because I dont believe in technical analysis in the long run.

Any advice would be greatly helped, I do economics in school so my knowledge of economics is decent enough.


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Old Sep 27, 2010, 12:47pm   #2
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Re: Whats the best way to analyse stock/forex?

Economists generally get their information from the agency which reports the data.
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Old Sep 27, 2010, 12:58pm   #3
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Re: Whats the best way to analyse stock/forex?

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Originally Posted by gnr2206 View Post

I want to start a strategy that involves fundamental data because I dont believe in technical analysis in the long run.

Any advice would be greatly helped, I do economics in school so my knowledge of economics is decent enough.
Fundamental trading involves having deep pockets and keeping on trades for many months, with a correspondingly volatile equity curve. In other words, you will need patience and fortitude, along with a lot of money.

Most traders on this website use price action to determine their trading - why have you decided this is not profitable?
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Old Sep 27, 2010, 1:32pm   #4
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Re: Whats the best way to analyse stock/forex?

2 ways to doing fundamental analysis of the type you mention:

top down - looking at macroeconomic information such as CPI and looking at what companies/sectors may benefit. this usually relies on some kind interpretation of greater fool theory.

bottom up - looking at individual companies for any kind of mispricing. this would involve looking at financial statements and various other sources of a similar nature. this usually involves selling buying something undervalued and selling it when it reaches "value", there are a host of problems with this. it can also involve buy and hold though, which has a whole range of problems as well.

so you can fundamental data about the economy from central banks and various public bodies for example in the UK there is BOE and National Statistics. fundemental data from companies can usually be obtained from investor relations sections on the companies website, companies in the UK file annual reports and half-year/interim reports. all of this information is open to interpretation though, none of this makes money by itself...does that answer the question?

Last edited by cr6196; Sep 27, 2010 at 3:10pm.
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Old Feb 20, 2013, 1:47pm   #5
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Re: Whats the best way to analyse stock/forex?

3 things to watch in any market

price
price
price

and also keep an eye on price....

N
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Old May 26, 2013, 12:50pm   #6
 
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Re: Whats the best way to analyse stock/forex?

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Originally Posted by garimakalra View Post
The best way to analyse a stock is Link Removed. It gives you a clear picture of the stock. Two approaches to carry out this analysis are top down and bottom up. In top down analysis, both national and international indicators are investigated and in bottom up method, the search starts with that specific business irrespective of region or industry.
Yeah ! I feel the same. technical analysis of stock is now an old method to evaluate a stock or Forex. Fundamental analysis have the ability to more deeper analysis that you can check with the technical analysis.

Last edited by VielGeld; May 27, 2013 at 8:30pm.
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Old May 26, 2013, 6:18pm   #7
 
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Re: Whats the best way to analyse stock/forex?

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Originally Posted by sidra View Post
Yeah ! I feel the same. technical analysis of stock is now an old method to evaluate a stock or Forex. Fundamental analysis have the ability to more deeper analysis that you can check with the technical analysis.
For a coach/trainer with a Vendor badge, you write absolute bollox. TA is not old fashioned -it is used by most of us on T2W for various types of trading as is fundemental analysis; plus both are often used on the same stock etc for planning/executing trades.
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....Indicators show the past. Price Action "Indicates" the future.
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Old Jul 9, 2013, 1:39pm   #8
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Re: Whats the best way to analyse stock/forex?

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Originally Posted by rohmatul View Post
i think that fundamental analysis is quite wrong to predict the forex...
it's news can be manipulated and make our trade become worse..
the best ways is using EA, don use fundamental and just going with the chart..
...5 minutes earlier in another thread:
Quote:
Originally Posted by rohmatul View Post
I'm newbie in fundamental of forex...
Until now, i also do not know, from where the forex moving up and down...
Is this the game that created by jorge soros??
http://www.trade2win.com/boards/econ...ml#post2161350

Explain please.

Peter
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