About fundamentals

Hello. I am Fox's Eye.
Up until now,"technical"aspects have been conveyed.
From today, over the next few days,"fundamentals"I intend to convey.
PER (price earnings ratio), PBR (price book value ratio), ROE (return on equity), which you have seen up to now but didn't know what they meant, will be explained in detail in this article.

1. What are fundamentals

Basic factors that show the economic activity status of a country or company.
In English"fundamentals""fundamental conditions of the economy". For a country, fundamentals can be read from economic indicators such as GDP growth rate, employment statistics, price indices, and balance of payments, and for a company from its performance and financial health, etc.
They are basic data used to forecast stock price and exchange rate movements.
Analyzing the fundamental factors that move stock prices is called"fundamentals analysis","technical analysis"is the contrasting term.

※Technical analysis
A method that predicts future price movements from chart shapes that graph price and volume trends.
It is also called"chart analysis."
A chart includes many types such as candlesticks, moving averages, Ichimoku Kinko Hyo, Bollinger Bands, Stochastics, Point and Figure, MACD, RSI, etc., each with its own analytical method.

After finishing the fundamentals article, I also plan to write in detail about these indicators.

In this way,fundamentals analysis and technical analysis have completely different natures.
Acquire fundamentals as knowledge and trade successfully using technical analysis.
The top traders I have seen until now have done so.

Of course,there are also people who profit solely through technical analysis.
I also trade mostly with technical analysis, but with knowledge of fundamentals, there were many times I felt I could have reduced unnecessary losses.

From these experiences, I realized that while technical analysis is important, investors who trade against the world should also be aware of global events.

From the next sections, more concrete topics such as the "employment statistics" and the "ISM manufacturing index" and the names of central banks in various countries and their roles.
There are many things I would like to convey, such as "tapering" and "dovish vs. hawish."

If you don’t mind, please continue to read in the future as well.
"Fundamentals" touch on.
Thank you for reading today as well.