Any financial decision should be based on the relevant reliability and validity of the information available. Trading is commonly divided into two camps based on how and what information must be used: Basic and Technical Market Analysis. The basic analysis seeks out the financial health of a company, its competitors, important markets, and even the broader shape of the economy in order to predict its future. In contrast, Technical Analysis compares current market movements to past market movements.
There is a lot of information to consider when doing Basic Analysis, from financial statements to press releases. Because modern financial markets operate in a worldwide environment, it is critical that an investor not only understands the health of the local economy but also keeps an eye out for global trends. In other words, Basic Analysis considers not just microeconomic aspects but also macroeconomic ones. An investor can consider a variety of news, but a few examples include GDP, Sales, KOL, Interest, and much more.
It is crucial to remember that industry professionals frequently offer forecasts for some of the events prior to public disclosures. As a result, such forecasts may have an impact on the value of the underlying assets. However, once announcements become public, the market might become far more volatile.
Charts are used in technical analysis to predict market behaviour. Trading systems allow traders to assess the market by utilizing several types of charts and indicators. The development of visual abilities is required for reading and interpreting these charts. It is also useful to be able to distinguish between the three primary series of trends: major, secondary, and minor. Finally, three transitional periods characterize these trends: the accumulation phase, the public engagement phase, and the distribution phase.
Refer to the free Marketing Analysis course for a more extensive examination of these charts, trends, and transitional stages on DIFX Academy.
DIFX, as a one-of-a-kind cross-asset exchange, enables individual traders, prime brokers, and companies to handle investments in forex, commodities, cryptocurrencies, and stock derivatives all under one ecosystem. DIFX has implemented an AI-based 24/7 customer assistance that can respond to any query in multiple languages, including English, Portuguese, Spanish, Hindi, and Tagalog, to further improve its user experience.
The native DIFX token powers the DIFX ecosystem, which includes main utilities such as staking, governance, and transaction fees. It acts as a primary representation of the DIFX platform, reinforcing reliability and transparency in the execution of worldwide payments and transfers.
Market Analysis is a topic with the potential to go extremely in-depth when it comes to learning, and multi-asset trading can be a lot to deal with if you’re running multiple accounts for different assets. With DIFX’s iOS and Android mobile app, users can trade over 500 assets in cryptocurrencies, commodities, forex, options, and stock CFD in one place — and even access the DIFX Academy courses for free while on the go.