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foreign exchangeThe price of money reflects a balance between money supply and demand. The two most important factors affecting supply and demand are interest rates and economic performance. Among various economic indicators, such as gross national product, inflow of foreign capital or international trade balance represent the economic performance of a country and also determine the supply and demand of its currency. Every day, different economic indicators are announced, and among these numerous data, as a general investor, one must have the ability to judge which one is more important. After determining the importance, one must also have a certain level of analytical and processing ability on the fundamental and technical aspects.
If we analyze from the fundamental aspect, we should focus on the development of financial and economic theories and political situation, so as to judge the factors of supply and demand. The most obvious difference between fundamental analysis and technical analysis is that fundamental analysis studies the causes of market movements, while technical analysis studies the results of market movements.
When valuing a country's currency in another country's currency, fundamental analysis includes a study of macroeconomic indicators, asset markets, and political factors in both countries. (EAConsultation on details of manual custodyV:ea0949)Macroeconomic indicators include economic growth rate and other figures, which are calculated from GDP, interest rate, inflation rate, unemployment rate, money supply, foreign exchange reserves, productivity and other factors. The asset market includes stocks, bonds, and real estate. Political factors can affect trust, social stability, and confidence in a country's government.
In addition to the above indices, various other indices, as well as news about foreign exchange, currency, national policies, and so on, require constant attention. Therefore, as ordinary investors, they do not have the ability, time, and energy to handle such a large amount of information at the same time, and cannot compete with an institution or team. On the basis of such a reality, foreign exchangeEAQuantitative trading refers to the use of computers and quantitative strategies to screen data from a vast market, find statistical relationships, and predict products(EAConsultation on details of manual custodyV:ea0949)The fluctuation pattern of currency prices is a trading model for finding investment opportunities, which is not affected by various economic data mentioned above and does not require analysis of fundamental and technical aspects. andEAQuantitative trading replaces human subjective judgments with advanced mathematical models, overcoming human weaknesses such as greed, fear, and luck, as well as cognitive biases. With the powerful information processing capabilities of the system, it has greater investment stability, greatly reducing the impact of investor sentiment fluctuations, and avoiding irrational investment decisions in extreme market frenzy or pessimism.
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