Investment Strategies:Technical Analysis and Fundamental Analysis


Two basic strategies are to invest in forex technical analysis and fundamental analysis in Peru. Most investors in small and medium-sized enterprises in the financial markets using technical analysis. This technique is based on the assumption that all market information and in particular the future of currency fluctuations can be found in the price chain. That is, all factors that influence the price has already been considered by the market and are therefore reflected in the price. Mainly that the investor does is base his / her investment in the quality of the three hypotheses. These are: the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone who uses technical analysis looks at the highest price and the lowest and currency, opening and closing prices, and the number of events.

The investor does not try to outsmart the market, or even predict major long term trends, but simply to show what has happened to that currency in recent times, and predicted that small fluctuations in general will continue exactly as before. Fundamental analysis is analyzing the current situation in the country of the currency, including such things as economics, politics, and other related rumors. By the numbers, the economy of a country depends on a number of quantifiable measures, such as interest rates central bank, the national unemployment rate, fiscal policy and rate of inflation. 

An investor can also expect less quantifiable occurrences, such as political instability or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must take into account the expectations and anticipations of market players. Because, like any stock market, the value of a currency is based primarily on the perceptions and expectations about the currency, not just their reality.

1 comments:

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