Trading Analysis 101 based on different approaches:
1. Fundamental Analysis
Focuses on the intrinsic value of an asset.
Involves studying financial statements, economic indicators, and news events.
Useful for long-term trading (e.g., stock investing).
Examples: Earnings reports, GDP growth, interest rates, company news.
2. Technical Analysis
Analyzes price movements using charts, patterns, and indicators.
Based on the belief that history repeats itself in the markets.
Useful for short-term and swing trading.
Key tools:
Support & Resistance – Identifying key price levels.
Trend Lines – Recognizing uptrends and downtrends.
Indicators – Moving Averages, RSI, MACD, Bollinger Bands.
3. Sentiment Analysis
Measures market psychology (bullish vs. bearish sentiment).
Looks at news, social media trends, and trader positioning.
Example tools:
Fear & Greed Index (for stock/crypto markets).
Commitment of Traders (COT) Report (for forex and commodities).
4. Risk Management
Never risk more than you can afford to lose.
Use stop-loss and take-profit orders.
Follow the 1-2% rule (risk only 1-2% of capital per trade).
Maintain a good risk-to-reward ratio (e.g., 1:3).
5. Trading Strategies
Scalping – Short-term trades (seconds to minutes).
Day Trading – Trades closed within a day.
Swing Trading – Holding trades for days or weeks.
Position Trading – Long-term holding based on fundamentals.
Do you have a specific market (stocks, forex, crypto) or strategy you want to dive deeper into?