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Fundamental-analysis

Price is what you pay, but value is what you getWarren Buffett is the most successful stock investor in the history of the world. Of course, which we know now. "The Oracle of Omaha" - that's what fans of his "magical instinct" call Buffett. But is that the point? As an 11-year-old child, little Warren was inspired by the possibilities of the stock market and invited his sister to participate in his first investment. These were preferred shares of Cities Service. The sister agreed to take the risk and Warren bought 3 shares at $38.25. But then, the wave of enthusiasm turned to disappointment and guilt - the shares fell to $27. Buffett's first investment "enterprise" lost 29% of the amount of investments that were borrowed. We can only imagine how the young investor felt at that moment, but I think this feeling is familiar to many: positive expectations clashed with the harsh reality of the stock market. Warren didn't sell shares. But when the price for them reached $40, he did it instantly. Apparently, considering this whole undertaking a mistake. The income was 4.6%, the sister received her money back. Everything worked out. Surprisingly, Cities Service's share price rose to $202 a few days later. Or +428%, Warren! The entire subsequent history of Warren Buffett confirms that he drew the right conclusions from the experience of his childhood. He realized that the price on the stock exchange may not reflect the value of the company itself. Buffett began to study accounting, the principles of fundamental analysis of enterprises, the ideas of Benjamin Graham. This allowed him to develop an approach that consisted in determining the real value of the company, different from the one that we see on the stock exchange. "Price is what you pay, but value is what you get". From myself I will add: and if the value is higher than the price - such an investment is considered reasonable. In the chart above, the price history of Buffett's main holding company, Berkshire Hathaway . As well as the S&P500 index. As you can see, his company "overtakes" the index, which means it shows much better performance than the average value of 500 US companies. Perhaps, in addition to deep analysis of the companies' business, Buffett's unique investor instinct helps, I don't know. But the fact that he is a real Wizard of our time is an indisputable fact for me.
NYSE:BRK.AEducation
by Be_Capy
2
Fundamental analysis in cryptoThrough fundamental analysis , we can try to detect the authentic and objective value of cryptocurrencies in spite of their market price. Through these techniques, we can assess whether a cryptocurrency is undervalued or overvalued, and we can detect a trading opportunity. With fundamental analysis , traders evaluate and study what can affect the price of a security, such as external factors or events. This type of analysis takes advantage of tools like periodic financial statements, financial ratios, economic forecasts and other types of additional information that can affect the value of a security. There are different approaches to fundamental analysis that analyse micro and macroeconomic variables in different ways: 1. Top-down approach: through this approach, the trader analyses macroeconomic variables first and then microeconomic variables. Global information is taken in first, followed by more detailed and specific values and variables addressed. With this approach, the trader looks at the world economic situation, and then looks more at the most economically attractive countries, along with the sectors with the most potential, and within them, chooses which ones are most convenient to invest in. 2. Bottom-Up approach: this approach is the opposite of the previous one: first the trader chooses companies with growth potential, analyses the sector they operate in and then the economic situation of their countries; the overall global economic situation is the last thing to be analysed. THE ADVANTAGES: This approach allows the investor to collect and analyse information external to the markets but that might still influence prices. This way, the investor has a clearer vision of the reality of the market. THE DISADVANTAGES: The trader using fundamental analysis needs more thorough knowledge and experience of accounting, business and, in the specific, the sector of interest. Moreover, investment terms with a fundamental analysis are longer because it requires more studying and background with respect to other analytical tools, like technical one. It can also be outweighed by chance factors, such as physical disasters affecting commodity prices and companies in general. In general, markets can also be surprised by unexpected changes in economic and political scenarios. In the specific case of crypto markets, fundamental analysis can be used to analyse the exterior components that can affect cryptocurrencies. Fundamental analysis can be carried out by looking at its use cases or community, but also at the team behind every specific crypto project, something that tells a lot about its overvaluation or undervaluation. Indeed, in the case of crypto markets, there are no financial statements, and therefore they cannot be evaluated as normal financial assets. Most cryptocurrencies are still in the developing stage and they do not have a lot of real-world applications; they rely mostly on miners, users and, of course, developers. It can be of great importance given that crypto markets are relatively more volatile and less stable than others, and due to their irregular situation investors react quickly to exogenous factors. These factors can vary and go from regulatory pressures to simple tweets - take Elon Musk as an example. Fundamental analysis can indeed help comprehend the fair value of crypto assets - data about this can be found on different websites, such as Reddit or Telegram. The use of technology is of utter importance. The investor can assess the usability of the adoption of the cryptocurrency he's interested in, but this tool can also be used to study how governments value cryptocurrencies and whether they want to implement new regulatory policies about it. We can also identify the progress that it's being made in terms of technology, such as how the activity of cryptocurrency is developing, along with its software or media coverage - all these factors contribute to increasing the crypto asset's value. From a psychological point of view, it can also help the investor trade with more confidence, knowing that a thorough analysis has been carried out. When the analysis is done daily, it can help you develop a finer investment strategy. In terms of financial metrics, what can be used is: Market capitalisation: the investor can look at the total market worth of cryptocurrency, which indicates whether there is space for growth. To get that, you multiply the current price per coin by its supply. Liquidity, or how easy it is to buy or sell the asset. A liquid market is a competitive market and is usually favoured by investors, also because it entails a lower bid-ask spread. Volume: it spurs liquidity because it is telling of how much money has been exchanged for a certain asset. Fundamental analysis usually prioritises the assessment of transaction values. If the transaction value is consistently high, it means that the cryptocurrency is in steady circulation. Fees: they reflect the demand on the blockchain. Every cryptocurrency can have its own transaction fee. The assessment of the fees paid over various periods gives the trader an idea of how secure the crypto asset is. Supply mechanisms: general microeconomics state that when supply is low and demand is high, price rises. A general belief for cryptocurrencies is that when supply runs out, the price will rise (this is, for example, a general prediction of Bitcoin holders). On the other hand, investors can also use project metrics for their fundamental analysis: Whitepaper: it is a technical document outlining the purpose and operation of the project. It should comprise the blockchain technology solutions, the use cases for the currency, the planned features and upgrades, sale and team information, and tokenomics (the factors that impact the tokens' use and value). The team: crypto teams are easily accessible to assess nowadays so that the investor can learn more about them and their credibility. The competitors: the investor can conduct an analysis of the crypto assets; competitors. If there are other cryptos which are more widely adopted or valuable, maybe it is best to back off from the item of interest. Last but not least, important instruments when evaluating cryptos through fundamental analysis are Blockchain metrics or On-chain metrics. The rising popularity of blockchain has made sure that lots of different types of information could become extremely popular, such as the number of active users, total transactions and transaction value. There are three fundamental metrics in this case: 1. Hash Rate : this is a measure of the mining machine's ability to conduct hashing computations in an efficient way. The hash rate also determines the profitability of the miner, as it indicates the likelihood that a block will be mined, and, indirectly, the chance of receiving the block reward. An investor should look at cryptos with a more extensive network because they are more resistant to attacks or data manipulation. 2. Status and Active Addresses: active addresses measure the number of dynamic blockchain addresses over a period of time. They are helpful in comparing the growth or decline of the activity or interest in the coin or token. The investor can also get to the active address through the computation of the total number of unique addresses over time (and a comparison of the results). 3. Transaction values : they can be determined for the assessment of the regular circulation of the crypto asset. It indicates how much money was exchanged on a given period, and therefore, the number of transactions.
BITMEX:XBTEducation
by vf_investment
Correlation between FX and Equities! (Chicken or the Egg?)Which came first, the chicken or the egg? Traders all over the globe are constantly looking for an edge, something that's going to give them an extra indication on market directional movements prior to them unfolding. I know from personal experiences and from chatting people at the firm that many traders lean towards finding correlation between the equities market and the FX market. There are a lot of analysts out there that say the equities market is what moves the FX market, and in return there are a lot of people that say the FX market is what moves the equities market. So, which one is it? Reality is will never know. There have been many of times where the FX market and shows clear indication of direction and then about a day later or a few hours later we have the equities follow suit. For example the RBA's recent decision to hike interest rates by .25% instead of 0.5% sent the Aussie dollar down, but when you move over to the AUS200 or look at General Equities in the ASX, you'll see that they had their biggest day in 2.5 years. Then there are times, and this is more into day trading, where the indices in the equities movements tend to correlate well moving into the FX markets. So there is evidence to support both sides. Not ideal. It goes without saying that correlation between equities and FX is slowly starting to fade as volumes kick up since we are in the technologically advanced era. But, what is or was the correlation and how does it work? The basic theory (aged) is that when equity markets rise, confidence in that specific country grows well, leading to an inflow of funds from foreign investors. Therefore, equities go up, FX value goes up. It's simple supply and demand when you look at it. If the equities are going up and you're a foreign investor and you want to buy into those equities, it creates demand for holding, let's say, the US dollar if I wanted to buy into the S&P 500. On the flip side, when the equity markets are falling. Then confidence falters, causing investors to convert their invested funds back to their own currencies outside of that country. This is a general theory and I don't recommend basing any of your trading decisions on this, because if you actually have a look at the charts and the correlation, you'll notice that recently it's not been too hot. While you do get a general directional bias, one tends to move before the other and they tend to be quite random in which one goes first. If you have the ability or the skill to be able to work out when something is correlating and when something isn't, then for sure I think you'll be able to find an edge in the market trading some kind of correlation between equities and FX. One correlation I have seen to be quiet useful in recent times is the S&P 500 And the Nikkei. Although in the Asian session the Nikkei is open in the S&P 500 isn't. Usually you see the S&P move and the Nikkei follow suit. Keep an eye on that correlation and tell me if you find any patterns. As a whole, trading correlations can give you an edge in the market. It can provide you with valuable information when it comes to trading, whether you are trading FX or trading Equities. But it's not as simple as it seems. It will take more diving and understanding the markets on a deeper level to know when their correlating and to know when to ignore. I hope you guys have enjoyed this article. If so, please give us a like leave and a comment. It does help the post a fair bit and I'll see you next week for some more content. Happy Trading! -Jordon Mellor
SP:SPXEducation
by TradeThePool
Bitcoin Vs Ethereum 2.0 ComparisonHey mates! Please be sure to advise which of these products you think will have the most alpha. If shared, please advise the timeframe you are thinking! (1year? 10years?) It is the clash of the titans, and my last article that provided the hard #'s got a great deal of positive traction in the comments, but I did get some DM hate from some Bitcoin maxi's. Please let me know what you think I am missing in my comparison so the whole TradingView community can learn from your wealthy of knowledge. Emotions aside, and Maxi agenda's muted - lets get logical. Bitcoin: #1 Myth B itcoin is protection against inflation -->Worse inflation in decades & the price crashes #2 Myth A supply cap in Bitcoin makes it scarce --> **Bitcoin is itself inflationary for another 100 years** #3 Myth Bitcoin is a store of wealth --> Newly minted Bitcoins are continually sold to cover operating costs while going directly against ESG Goals (Constant Selling Pressure) #4 Myth Bitcoin is safe -->For $13 Billion Dollars a state sponsor can launch a 51% attack against it. -->(A single aircraft carrier cost less than that) -->A Quantum computer can hack any BTC wallet **To fix Bitcoin (POS) it would take years & create yet another fork destroying its value** A fork would have to be made, because the miners make a lot of money (Cost about $7k per token mined) dumping the coins onto the maxis. This is a constant selling pressure that prevents it from ever being a true store of value. The tokenomics are not entirely broken(unless you can not forgive all the coal burned in North Korea & China to mine BTC), but it is not going to be the best performer of all. Ethereum: #1 Benefit: (post-merge) Ethereum is POS -->Staking encourages long-term passive yield (hodling for yield) -->ESG Friendly, 99.5% more efficient than Bitcoin #2 Benefit: Ethereum is deflationary -->Every block will burn ETH, and rewards are slashed by 90% -->Every Dex swap, NFT mint, transaction will lead to ever more scarcity -->For the next 100 Years BTC will inflate supply while ETH deflates supply -->Deflationary prices rise in BP*, Inflationary prices drop in BP #3 Benefit: Ethereum is only improving while Bitcoin development continues to be stale -->Eth has 220 core developers -->Btc has 103 core developers -->Thousands of additional projects are being built on-top of ETH (the next APPL/AMZN) -->Transaction speeds and cost will improve with 'sharding' #4 Benefit: It is MUCH safer than BTC -->Slashing prevents validators from acting malicious -->BTC is susceptible to 51% attacks *buying power SO WHAT DOES THIS MEAN TO ME? I was screaming "back up the truck" when ETH dipped below $1k to long (I put 100% of my 401k into the product at that point, coupled with all my spot holdings being ETH) Many ask if they missed the long? - I say this is only the genesis to generational wealth I recommend joining me in being a validator. Get some passive yield in the most safe deflationary asset in crypto. Eth will fundamentally reward being a long-term investor which will be very attractive to institutions. This, coupled with ESG benefits and the fact ETH has actual utility will make this a product that a decade from now will be in many 401k products, for auto-biweekly deposits. The miners have an agenda , when you hear 'oh its sooo green, volcano's power it' just know that a guy in Sweden handcranking a windmill to mine is hardly the norm. Coal burners powered it for years, and will continue to do so, and there is no amount of code that can fix this waste. Just because 20% is nuclear powered, does not mean that power could have been used elsewhere to drive down energy cost for others. People in Europe and France right now are about to get their largest energy bill in history this winter. Bitcoin POW is essentially broken long term, as they can not fix it to POS as it will hardfork again because the miners make a fortune dumping the newly minted (inflation) coins on new entrants creating a constant selling pressure. Bitcoin is a granddaddy relic. The myspace/AOL of crypto. Please let me know what you think brother! I am not a bitcoin hater, the price may rise, but I think the alpha is in ETH. Bitcoin has been a huge blessing to me, but the people that purchased coins at $60k are not vibing with 'store-of-value' right now. The product is only worth what it is denominated in Fiat USD. Why do people hate fiat? Inflation. What is Bitcoin fundamentally for another 100 years? Supply Inflation "But Zen! Your wrong! Because we know the max supply of coins the new minted coins are all priced in!!" - if this were the case the price would not be wildly volatile. Another Myth from the Peter Schiff of Bitcoin - that salesman Michael Saylor. ..or as he says 'missionary'. It really has 'cult-like' vibes hearing that, be a critical thinker and consider generational wealth in ETH. Interested in Learning More? Click on the chart below for an in-depth comparison:
Education
by ZenMode
16
Confirm Fundamental Analysis With The Olympus CloudWe used the unfortunate global environment to pinpoint natural gas as a trading opportunity in early 2022. We then used the Olympus Cloud to define entries and exits. When we are trading on a longer term time frame, such as the daily, and we are confident our fundamental analysis is on point, we will risk up to 4 times more (5-8%) than we do in our high frequency trading (2%). In these trades, we required the Olympus Cloud to indicate a higher swing low than the previous low combined with a confirmed bull cloud transition -- it's as simple as that. Our stop loss was under the cloud, and our targets were 2R, and 5R respectively. As you can see in the data section below this post, our commodity account has grown by over 35% YTD, with 12% in additional gains currently open. The trade accuracy was 80% with an astonishing profit factor of over 9 -- meaning we gained 9 times our risk. Of course, if we had gone all in, these trades could have earned up to 80%, but had the trades not worked out we would have taken huge uncontrolled losses. When you are trading with proper risk management, you will not earn as much, but you will keep your profit margins in check and won't suffer massive losses that are hard to recover from if the trade does not go in your favor.
OANDA:NATGASUSDEducation
by Level8Trading
7
Monero : Every detail about latest hardfork + Technical AnalysisHi friends. hope you are good. today i want to tell you some details about August 14 Monero Hardfork. after that we take a look at XMR chart and analyze that in price action. Lets Do Them: This fork happened at block 2,688,888, this Sunday (14 August). It brought several fixes to the internal multi-signature mechanism to facilitate the exchange of information. Such as key sets and data synchronization between wallets, as explained on their website: “Multisig means that a transaction needs multiple signatures before it can be submitted to the Monero network and executed. Instead of one Monero wallet creating, signing, and submitting transactions all on its own, you will have a whole group of wallets and collaboration between them to transact.” The network upgrade also included changes to its ‘Bulletproofs’ algorithm to boost transaction speeds and reduce transaction sizes by an estimated 5-7%, as well as improvements to its multisig mechanism. At the end lets see some after effects: 1-Monero’s block size increases. 2-XMR’s market capitalization rose 3-According to Lunarcrush.com , Both social mentions and engagement saw 121% and 180% hikes. 4-Whales began to showcase interest to XMR. Hope you enjoy this article. now lets see Technical analyze of XMR on marketcap: please share me your opinion about this post in comments. we will grow togheter...
CRYPTOCAP:XMREducation
by TraderAmin-KZ
Using BTC Dominance With Current Bitcoin PriceSome people monitor bitcoin price along with bitcoin dominance to help them make trading decisions. Although they are not iron laws, here are some potential outcomes that various combinations of BTC price and dominance may be indicative of. 1. When the price and dominance of BTC are rising, it could signal a potential bitcoin bull market. 2. When the price of BTC is rising but BTC dominance is falling, it could signal a potential altcoin bull market. 3. When the price of BTC is falling but BTC dominance is rising, it could signal a potential altcoin bear market. 4. When the price and dominance of BTC are falling, it could signal a potential bear trend for the entire crypto market. 5. While these two factors do not imply a definite bull or bear market, historical observations suggest a correlation.
CRYPTOCAP:BTC.DEducation
by yaser_rahmati
1
ETH 2.0 Merge Upgrade Detailed and Release DataHello all traders and investors. according to go approch ETH 2.0 Merge upgrade Today i decide to explain more about that and tell you more about wahts going to happen. I try to explain as simple as possible Whithout killing time lets go... What is The Merge? The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability. It's important to remember that initially, the Beacon Chain shipped separately from Mainnet. Ethereum Mainnet - with all it's accounts, balances, smart contracts, and blockchain state - continues to be secured by proof-of-work, even while the Beacon Chain runs in parallel using proof-of-stake. The approaching Merge is when these two systems finally come together, and proof-of-work is replaced permanently by proof-of-stake. Merging with Mainnet Since genesis, proof-of-work has secured Mainnet. This is the Ethereum blockchain we're all used to—it contains every transaction, smart contract, and balance since it began in July 2015. Throughout Ethereum's history, developers have been hard at work preparing for an eventual transition away from proof-of-work to proof-of-stake. On December 1, 2020, the Beacon Chain was created, which has since existed as a separate blockchain to Mainnet, running in parallel. The Beacon Chain has not been processing Mainnet transactions. Instead, it has been reaching consensus on its own state by agreeing on active validators and their account balances. After extensive testing, the Beacon Chain's time to reach consensus on more is rapidly approaching. After The Merge, the Beacon Chain will be the consensus engine for all network data, including execution layer transactions and account balances. The Merge represents the official switch to using the Beacon Chain as the engine of block production. Mining will no longer be the means of producing valid blocks. Instead, the proof-of-stake validators assume this role and will be responsible for processing the validity of all transactions and proposing blocks. No history is lost. As Mainnet gets merged with the Beacon Chain, it will also merge the entire transactional history of Ethereum. You don't need to do anything. Your funds are safe. What do I need to do to get ready? You do not need to do anything to protect your funds entering The Merge. As a user or holder of ETH or any other digital asset on Ethereum, as well as non-node-operating stakers, you do not need to do anything with your funds or wallet before The Merge. Despite swapping out proof-of-work, the entire history of Ethereum since genesis remains intact and unaltered after the transition to proof-of-stake. Any funds held in your wallet before The Merge will still be accessible after The Merge. No action is required to upgrade on your part. Take away from scammers after the Merge: As we approach The Merge of Ethereum Mainnet, you should be on high alert for scams trying to take advantage of users during this transition. Do not send your ETH anywhere in an attempt to "upgrade to ETH2." There is no "ETH2" token, and there is nothing more you need to do for your funds to remain safe. Ethereum Merge Date The Ethereum merge date and transition to proof-of-stake is expected to take place on September 19, 2022. We have some Testnet examination before Merge. I list them for you below: - Goerli/Prater client releases 27th or 28th of July. - Announce 28th/29th. - Prater Bellatrix on the 8th of August - Goerli Merge on the 11th. - ACD 18th August plan mainnet Merge: - Bellatrix early september; Merge two weeks later (week of Sept 19th). and additionally i attached a Technical Analysis for ETH/USDT After we surpass 1700 Resistance , we reach 1800 now and we pass it too. now we are on road to strong 2000 resistance and after that 2400. According too incredible happenings for ETH 2.0 and the U.S. inflation record a peak i think we will see this levels in coming days. Additionally we see 3 strong candle patterns on 1800 breaked Resistance 1 - Marobuzu Candle 2 - Morning star pattern 3 - Bullish Engulfing Like i show on the chart. These patterns are showing a strong demand in this zone. Hope you enjoy this article. please share me your opinions in comments and i want for all of you a lot of profits. thanks for reading.
Education
by TraderAmin-KZ
5
THE MOST IMPORTANT FOREX FUNDAMENTALS 📰 Hey traders, Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets. In this post, we will discuss the most important fundamentals that affect forex market. 📍Unemployment rate. Unemployment rate reflects the percentage of people without a job in a selected country or region. Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength. 📍Housing prices. Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future. Growing demand for housing is considered to be one of the most important drivers in the economy. 📍Inflation. Inflation reflects the purchasing power of a currency. It is usually measured by evaluation of the price of the selected basket of goods or services over some period. High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy. 📍Monetary policy. Monetary policy is the actions of central banks related to money supply in the economy. There are two main levers: interests rates and bank reserve requirements. Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency. 📍Political discourse. Political discourse is the social, economical and geopolitical policies of the national government. Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy. 📍Payrolls and earnings. Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals. Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy. Pay closes attention to these fundamentals and monitor how the market reacts to that data. What fundamentals do you consider to be the most important? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
Quick coin analysis before buyingBINANCE:BTCUSDT How to evaluate the tokenomics of the project? Below you will find the main questions that you need to ask yourself when analyzing the tokenomics of the project - this scheme will not predict the price of the token with an accuracy of a cent, but it will help to predict the dynamics and assess the prospects. 1. Supply Main question: based on supply alone, will the token be able to maintain/increase the price, or will it be eroded by inflation? General supply — How many tokens exist today? How many will there be in the future? Is there a supply limit? Emission rates Is the emission rate fixed or changing? — If it changes, what factors determine it? Allocations/vesting — How was supply originally distributed among investors, community, team? Are there any groups that own a significant share of the supply and could exert significant selling pressure after vesting ends? — What is the vesting schedule for the largest holders? 2. Demand Main question: why would anyone hold this token? ROI - Without taking into account the price increase, what income does a simple hold of a token bring (for example, due to staking)? — Is it possible to get additional profit through farming? — Are protocol revenues distributed among token holders? — Is there a rebase* as inflation progresses? * A rebase is similar to a stock split, when holding or staking a token allows the owner to increase its amount, thereby compensating for the impact of inflation (for example, a mechanism when the share of ownership of a supply remains unchanged). Community How active are Discord and Twitter of the project? — Is there an ecosystem fund? Grants? Hackathons? — How actively is the protocol working on community involvement? — Are there one-time or ongoing initiatives to create additional demand for the token? — Is there a token blocking program? If yes, how many awards are allocated to it and what are the requirements for receiving these awards? — What share of the total number of tokens in circulation is locked? — What additional selling pressure will arise after the expiration of locks? Are there non-monetary benefits from staking and locking tokens (e.g. increased voting power)? It is worth noting that even taking into account all these factors does not in itself guarantee the growth of the token or the success of the project, but is only one of the necessary aspects, in addition to the market phase, hype around a particular direction, and others. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Look at my ideas about interesting altcoins in the related section down below ↓ ✅For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
ETH 2 phases and why we need it?Hi friends today i want to explain ETH 2.0 phases in short. like you see in picture above it explain our need to ETH 2.0 so i will summarize phases below: Phase 0 : Beacon Chain Phase 0 is the name given to the launch of the Beacon Chain. The Beacon Chain will manage the Proof of Stake protocol for itself and all of the shard chains. Once Phase 0 is complete, there will be two active Ethereum chains. For the sake of clarity let’s call them the Eth1 chain (current, PoW main chain) and the Eth2 chain (new Beacon Chain) During this phase, users will be able to send their ETH from the Eth1 chain to the Eth2 chain and become validators. (They will NOT be able to migrate this ETH back to Eth1) Phase 1 : Shard Chains Shard chains are the key to future scalability as they allow parallel transaction throughput and there will be 64 of them deployed in Phase 1 (with the possibility of adding more over time as hardware scales). Shard validators, who are randomly selected by the Beacon Chain for each shard at each slot, merely come to agreement on each block’s content. Phase 2 : State Execution Phase 2 is where the functionality of the entire system will start to come together. Shard chains transition from simple data containers to a structured chain state and Smart Contracts will be reintroduced. Phase 2 also introduces the concept of 'Execution Environments (EEs). Every shard has access to all execution environments and has the ability to make transactions within them as well as run and interact with smart contracts hope this article is useful for you. thank you all for your supports.
Editors' picks
CRYPTOCAP:ETHEducation
by TraderAmin-KZ
58
Bites Of Trading Knowledge For New TOP Traders #11 (short read)Bites Of Trading Knowledge For New TOP Traders #11 ---------------------------------------------------------------- What is Fundamental Analysis? - Fundamental analysis is a method of determining a market’s “real value” or "fair market" value through the collection and examination of financial and economic information. Information gathered may include financial metrics which identify business drivers of the market, and could involve financial modeling of the market. Fundamental analysts search for markets that are currently trading at prices that are higher or lower than what is expected to be their fair market value. If the fair market value is calculated to be higher than the market price, the market is deemed to be undervalued and could be considered to be bought. Conversely, if the fair market value is calculated to be lower than the market price, the market is deemed to be overvalued and could be considered to be sold. What is Technical Analysis? - Technical analysis is a method employed to evaluate a market and identify trading opportunities with a focus on inputs that include price and/or volume. Various financially based calculations and statistical models are commonly employed to derive price trends and patterns based upon which trading decisions are made. Technical analysts believe past trading activity and price changes of a market could be valuable indicators of a market’s future price movements. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS - Common application of financial market instruments for managing risk and opportunities. Portfolio Diversification Portfolio diversification is the process of investing your money in different asset classes and securities in order to minimize the overall risk of the portfolio. For both corporate and individual investors, having access to markets that enable the building of a diversified portfolio is an important consideration when managing futures focused accounts. Similar to managing risk, the market to trade would be a key variable to clearly state and support with reasons for trading or investing. Reasons for selecting one market over another could include price volatility, liquidity, daily volume traded, size of the minimum price increment, and value of the minimum price increment. Comparing these variables between markets will help decide the suitability and/or risk of each. For example, the parameters for a price driven strategy may be designed to be applied to any market whether it be index equity futures or forex futures. However, the signals for entry may not always trigger if a trader were just to focus on a single index equity futures such as the Micro MSCI Europe Index futures. Having access to other futures markets, such as the Mini Onshore Renminbi/US Dollar Futures, can introduce both a foreign currency and Asian element to a portfolio. This allows for the creation of a diversified portfolio with varying entry and exit points, or the ability for more trading oriented investors, increased opportunities to execute price driven strategies more often across a range of futures markets. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
Interest rates, Inflation and how to trade it.Hey Traders, Massive week this week fundamentally for the Forex market. 3 big interest rate decisions being released so I thought there was no better time than now to have a chat about what it is, what it indicates and finally, how traders profit from it. Fed and BOE almost guaranteed to hike rates, RBA is sitting unsure. Have a watch of the video and I am more than happy to have a discussion in the comment section! As always, have a fantastic trading week and I wish you all many profits.
Education
by the5erstrading
4
Poison Pill Explained: Why Elon Wants to Buy TwitterIn this post, I'll explain the ongoing situation with Twitter; how they're preventing Elon from buying the company out, and my thoughts on why Elon wants Twitter so badly. Twitter's Strategy - Twitter is using a strategy known as the 'poison pill'. - This is one of many defensive strategies that boardrooms can take when they're trying to prevent hostile takeovers. - While the method may vary depending on the deal, the essence of the strategy is simple: make the stock less appealing to the hostile acquirer, and allow opportunities for other shareholders to acquire the stock at a discounted price through the use of call options. - Netflix (NFLX) successfully used this strategy against Carl Icahn in 2012, when he attempted a hostile acquisition of the company, making it difficult for Icahn to acquire more than 10% of the company without approval from the Netflix board. - Luckily for Icahn, he made 20x returns on his investment simply from holding Netflix shares for the three years that he attempted a takeover. - In the case of Elon's acquisition of Twitter, the terms are slightly different. - Elon offered to buy the entire company for $43B, which is a generous offer of $54.20 per share. - Twitter's board however, having seen prices once hover above $70, were not happy with Elon's offer, and asked him to join the board with a 14.9% stake limit - Elon refused. - Twitter emphasized that their poison pill strategy will activate if Elon tries to acquire more than 15% stake in the company, and will remain effective until April 14, 2023. Twitter Shareholders by Size - The Vanguard Group, Inc. 10.3% - Elon Musk 9.2% - Morgan Stanley Investment Management 8.4% - BlackRock Fund Advisors 6.5% - State Street Corp. 4.5% Why Elon Wants to Buy Twitter - My thoughts on why Elon is looking to acquire Twitter is as follows: - The narrative that Elon is pushing as his justification for the purchase is "free speech". - He has been vocal about Twitter's decision to shut down former US president Donald Trump's account. - However, I personally believe that there are deeper layers to this matter than just 'free speech', and 'twitter's untapped potential'. - Tesla currently does not spend a single dime on marketing and advertisement costs. - Elon dissolved the PR department in 2020, and stated that the capital that was previously used for marketing, will now be reinvested back for R&D. - Instead, Elon has been using his twitter account as a channel to promote his businesses - not only Tesla, but also SpaceX, SolarCity, and the Boring Company. - The last time Tesla had a PR department, it spent $70m in marketing and advertisement costs. - So taking that into account, and considering the value that was created by those costs being reinvested back into R&D, Elon has singlehandedly managed to create hundreds of millions of dollars in value through his twitter account. - And the risk of him having his twitter account shut down, due to his potential violation of one of their many policies, is huge. - His acquisition of the company's stake, and taking the company private eliminates this risk for him. - Put into context, it makes more sense: Elon's $43B offer to buy Twitter is equivalent to someone with a net worth of $1m purchasing a G-wagon for their rental car business. Conclusion On one hand, we have Twitter, a company willing to use the poison pill strategy to prevent a hostile acquisition from taking place, and on the other hand, we have Elon Musk, who's trying to take the company private for $43B. I think there are bigger implications to his offer, as we've seen how he was able to connect seemingly unrelated businesses to form a virtuous cycle that would become the pillar of his entire empire. We use electricity generated from SolarCity to power our Tesla cars using solar energy. With the satellites that SpaceX launches, our Tesla cars undergo software updates in real time, and the Boring Company solves traffic jam issues by taking our Teslas through underground tunnels. I'm sure there's room for Twitter to fit into this equation, but I'm not completely sure as to what Elon has on his mind. One thing is for sure: it has more to do with Elon's personal philosophy. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
NYSE:TWTREducation
by Michael_Wang_Official
11
4-8th April Economic Outlook!Hey traders, Today we're going to be looking through this weeks economic calendar. We're going to look at what data is going to be released and what really is going to be affecting the market. I will also share my bias on the different pairs and the different data being released to see if any of these are going to be tradeable or whether or not we should just kind of stay out of the market during these times of uncertainty. I hope you enjoy this outlook into the week ahead. It's going to be a quiet week compared to recent times unless we get any breaking news coming out of Russia and Ukraine. In terms of economic data releases, it is going to be a little bit quieter than usual. Monday - 4th April We don't have too much happening in our favor on Monday. Here the biggest release is the unemployment change for Spain. While it may move the euro just a little bit, I'm not seeing a whole lot of tradeable opportunity. I think Monday is going to be a lot better just to kind of sit back and watch to see what happens. Tuesday - 5th April On Tuesday, we get a little bit more exciting. We have a fair bit of data being released for us. 🟨 AIG Construction Index Early in the morning we have the AUD, AIG construction index. This index indicates how well the construction industry is actually running at the moment, it's not something we're going to trade, but rather it's good insight as looking ahead into the PMI, into our employment rates and then overall trade balance in the future. It is a good indication of how well the economy is running confined into that construction sector as it is a very large employer in Australia. 🟥 Cash Rate Coming in a little bit later in the day, we have a very large, definitely tradeable event with the RBA rate statement and their overall cash rate. The forecast is for it to remain at 0.10%. I believe this will remain at 0.10%. I'm not expecting any shock announcements. However, in the event we do get a shock number come through, it's going to be a very volatile time and a possible opportunity to be able to catch a lot of pips on the Aussie dollar. If we do get a shock event on this, it will move for a few hours prior to entering into the European market so keep an eye on this release. ⬜ EUR Looking ahead, we do get a lot of services PMI coming out for the euro, but not really looking to be trading that. I'd rather use that as an indication of how well the economy is running, looking ahead into future releases. 🟥 ISM Services PMI The biggest standout is the ISM services PMI for the US dollar. Obviously the market is forecasting growth in the services industry. I'm not too sure how well that's going to stand. It's not something I usually trade. However, given the previous data releases, I'm unsure if it's going to be able to maintain its bullish forecast. We've been told that construction spending is down, the manufacturing PMI, while still expanding has slower growth than what it was first anticipated. Our nonfarm employment change was negative. There's a lot of different areas suggesting that we may not be as hawkish as what the forecast says. So I do expect this to come in a little less than what we're looking at currently but only time will tell. Wednesday - 6th April 🟧 Crude Oil Inventories This is going to be an interesting one. This is something I've been looking to try to look to how it affects the US dollar, but rather something I'm just overly intrigued about given the current circumstances in the world. 🟥 FOMC Meeting Minutes FOMC meeting minutes is always volatile one. it is good to have a look through what the meeting discussed and how it went on. For users that don't know how this affects the market FOMC meeting minutes is a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates. Thursday - 7th April 🟨 AIG Service Index Another AUD index release. We have the construction index earlier in the week, now we have the services index coming out. Once again it's not something I trade, however, it is fantastic insight into retail sales data. When we do get those retail sales announced next week, we can use this services index to give us a pivotal action point on where those retail sales are aiming, which is why I've noticed that in today's economic calendar, it's worth noting because we can make a preemptive play on the retail sales data release. 🟨 Retail Sales The Euro retail sales expecting a little bit of an increase with the overall potential panic buying happening across Europe. It's going to be interesting to see what happens here. We massively missed the forecast in March. However, it is looking like they've been a little bit bearish while still forecasting growth of 0.6%. Banks are no longer aiming for the real high numbers, I think we're going to come in maybe around 1%, but I'm not putting money on that prediction, it is rather an assumption. I will have to do some more research and I recommend you do you same as well, having the services PMI come through this week from all the different countries within Europe is going to be a great insight into how well the economy is actually performing on the retail sales front. Friday - 8th April Nothing worth mentioning on Friday, the week is going to come to a slow stop. As I said, it is a bit of a slow week this week, only a few different data points worth noting, so we will end the week quite quiet. Obviously, we might have a bit more movement on the fundamental side of things next week but this week looks like it's lining to be a great technical analysis trading week. Always keep your eye on the whole Russia and Ukraine situation because anything can happen there and the market will react accordingly. Do keep your news streams live and in depth as you don't want to be caught off guard by anything going on over there. These are personally just my outlooks having a look into the future week. Do note the data to keep an eye on when they are released and of course you can use the TradingView calendar as well to keep note on that. Have a fantastic trading week, I wish you all the best success.
Education
by the5erstrading
Biggest Mover of March! (13.30%)Hey Traders! Just like that, another month has flown by, end of the quarter this time, so it's a little bit more special. What I want to do is run through and have a look at the biggest movers to the upside and to the downside of the month. One of them really stood out across all pairs an I think you guys already know which one I'm going to talk about, the Japanese yen. Looking at our biggest mover of the month, it was AUDJPY and unsurprisingly given how bullish we are looking at the Aussie dollar at the moment and how bearish we were looking at the Japanese yen. As the data unfolded throughout the month, which I talk about momentarily, I am not shocked about this big move but was no expecting a whopping 13.30%. Which was a fantastic move and good to see these types of moves in the Forex market when the volatility comes through. It's bad news obviously for the Japanese yen. Great news for the Aussie dollar. Be interesting to see how it reacts from here. The Japanese yen was very volatile this month. We have a lot of movement due to the unforeseen circumstances around the world. Looking at the Japanese yen fundamentally, it wasn't a great month. Their unemployment rate increase showing that less people had jobs. The producer price index actually increased too much greater than forecasted, which was good news for the Japanese yen, but that didn't last long with the BSI manufacturing index being a massive shock to the system. While the forecast for it was an 8.2 from its previous of 7.9 (forecasting growth). It came in at a whopping -7.6, which was very bad news. Once we adjusted to that bad news, we were met with the trade balance, which was extremely negative as you can see by the chart put below. You can see where the money started to leave the Japanese yen and flood over to the AUD. From there, the shorting of JPY just carried on and on. We had some news come out, like the Tertiary Industry Activity, it was predicted to be negative, it wasn't as negative as forecasted, but the end of the day it is still slower growth which pushed the price even further down. The unemployment rate increased right at the end of the month. As you can see that the price started to push back in and the news might start flipping to show more strength into the Japanese yen compared to what we had. We did see also the pound take a bit of a hit as well as the euro. The euro was a very interesting one as it's reacted with how the whole Russia and Ukraine, scenario is unfolding. Keep an eye on that as we proceed with peace talks, making progress supposedly. We might see a volatility coming through these currencies, but overall I have a bearish sentiment moving into April, not too sure how well that's going to hold up in the long run. And finally, looking at the Swiss franc paired against the US dollar, didn't really make much progress. It was very weak at the start of the month or maybe the US dollar was just wrong. But you can see it moves quite nicely, then we hit the mid point, it's just pulled back into almost where we've opened leaving a very tall top wick on USDCHF. It'll be interesting to see on where we progress from here. Only losing about 0.63% to the US dollar. Thanks so much for tuning in. I hope you enjoyed this. If there is any questions or anything you would like to ask, please leave a comment and I'll get back to you as soon as possible. Cheers guys. Happy trading.
Education
by the5erstrading
Forex Fundamental AnalysisHello! Today I want to talk about a topic that is rarely discussed, but important at the same time - fundamental analysis of the forex market. News, GDP, interest rates - all this affects the market and everyone needs to be able to understand this. What is fundamental analysis Forex fundamental analysis is a way of analyzing a currency, making predictions based on data that is not directly related to price charts. There are two types of influence of fundamental indicators on the price : Short term. Fundamental information has an impact on the market within minutes or hours. Long term. Fundamental factors, the impact of which on currencies lasts from 3-6 months. Used for strategic positions. Several basic levels are used for conducting FA. The level of the national economy. Comprehensive analytics of economic and political indicators of the country. Industry. The volumes of supply and demand, prices, technologies, as well as production parameters are studied. Individual currency level. Financial statements, management technologies, business strategies, competitive environment are assessed. The classical scheme of fundamental analysis looks like this : An analysis of global financial markets, the presence of signs of a crisis and force majeure events, an examination of the situation in the economy and politics of the leading world powers is carried out. Economic indicators and the general level of stability of the region (industry), the analyzed currency or other instrument are assessed. The degree of influence of regional and world economic indicators on the dynamics of the selected financial instrument in the short and medium term is determined. Main fundamental factors When using FA directly to open trading positions, the following points will be decisive (in descending order of importance) : Interest rates of central banks (CB). Macroeconomic indicators. Force majeure situations, market rumors, news. Central bank rates According to the theory of macroeconomics, increasing interest rates cause currencies to rise in price, while falling interest rates make them cheaper. However, there are situations in the Forex market in which a decrease in the rate becomes the reason for the strengthening of the currency. Foreign exchange market interventions Currency interventions are an important tool in the analysis. Central Banks resort to such a measure very rarely, but you should not ignore this phenomenon. Macroeconomic indicators For any country without exception, there are data of constant importance: the level of GDP; inflation rate; trade balance. These reports are expected by the market. The approach of their publication dates gives rise to a lot of rumors that fuel the trading frenzy. Such an environment often creates situations in which the release of specific numbers does not cause almost any reaction, since the market has already beaten them in advance. However, as FA practice shows, this happens only when the existing trend is not subject to change. In the case when the published data differ significantly from the forecast, the market response can be very violent. This is especially true of the moment of the general reversal of the current trend. Important macroeconomic indicators In simple words, a macroeconomic indicator is expected news, showing up-to-date data on the main indices of the financial and economic state of the state. The advantage is that each trader can know in advance the moment of release of any data from the economic calendar. These indicators affect the rate in the short term and are suitable for trading on medium and short term timeframes. Types of macroeconomic indicators Trade balance. This indicator reflects the volume of exported goods to imported ones. A positive balance is called when exports are higher than imports. Assumes a strengthening of the exchange rate, due to the fact that rising exports increase the demand for the national currency of the exporting region. Discount rate of the National Bank. On its basis, interest rates on deposits and loans are formed. When the national bank rate rises, the currency strengthens; when it falls, it weakens. Gross domestic product. The volume of GDP is obtained by summing up the entire range of services and goods that were produced in the country per capita. However, an increase in GDP always leads to the strengthening of the national currency against other currencies. Inflation. The growth of this indicator leads to the depreciation of the national currency. Unemployment Rate. As a rule, an increase in the indicator is followed by a decrease in output, an increase in inflation and a negative change in the trade balance. For this reason, the data on unemployment has a strong pressure on currencies, and an increase in the figure causes a depreciation. Macroeconomic indicators One of the most common mistakes in trading is trying to trade on weak news. Therefore, you need to understand which data pertains to you. Macroeconomic indicators One of the most common mistakes in trading is trying to trade on weak news. Therefore, you need to understand which of the data are important. Important market data includes : money supply; balance of payments deficit (Balance of Payment Deficit); trade balance deficit (Balance of Trade Deficit); unemployment rate (Unemployment Rate); a significant fall or rise in the rate of inflation (Rate of Inflation); fluctuations in the volume of GDP; change in key rates; emergencies (natural disasters, unexpected events in politics or Second stage of analysis An assessment of the numbers predicted in the calendar for future data. Analysis of the market reaction to this event. This is done in order to understand the price behavior at the news release. For example, when the exchange rate of a currency dependent on news is growing steadily even before the release of figures and at the same time positive data is predicted, one should not expect sharp fluctuations in the exchange rate at the time of the release of the information. And if the forecast turns out to be wrong, then the market can react with a powerful reversal of the current trend. Decision-making. There are two options for entering a trade. The first is to use the situation to open an order on the current trend before the release of the news with constant trailing stops to protect the position. The second is to wait for the release of the data and make trading decisions according to the situation. Results Fundamental indicators certainly affect the price, but each in its own way. It is worth remembering this and not running to open a position just by seeing some news. Analyze, try to understand the possible reaction of the market to the news. Use all the information, be objective and then you will be better than most. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Editors' picks
Education
by Lingrid
46
GOLD TRADING GAUGE | EASY TO OBSERVEThe 'Why' Insight: The other way to keep your money is to put it in a savings account or into bonds that aren't very risky and will pay you interest. People who invest in gold lose money when interest rates go up because the yields on savings accounts and bonds also go up, which makes gold less appealing as a long-term investment. It is very important to look at the interest rate when you are trying to figure out how much gold is worth. Storage costs and insurance are two more things to think about. The price of the commodity will be the sum of all of these things. Thereafter, how the price moves depends on things like the movement of the US Dollar and things like demand and supply. Warning: This is the broader view, not the detail spesific method for entry.
TVC:GOLDEducation
by TradingCocktail
What is the pricing in factor?Pricing In Human behaviour, specifically greed and impatience are some of the main reasons the markets move the way they do. The term pricing in is the definition and illustration of human impatience. Due to the fear of missing out, impatience, and greed, humans natural instinct after hearing a rumour without any solid information to back it is the buy into it. Brexit has been causing a lot of this recently with rumours of a possible Brexit solution which causes investors to “price in” based on the rumours. Interest rate cuts are another example where they begin to get priced in based on the rumours. Buy the rumour, sell the news. A sentence commonly seen in the trading world. Let's imagine we have interest rate data expected to be released at 2%. The current rate is 3%. This data is seen as negative as the interest rate is dropping so many people can begin to factor that information in days prior to the release of the news. This is demonstrated by a drop in the price of the currency much earlier than the actual release. Once the data is released, it comes out at 2%, and you may notice the price does not move much. This is due to the fact that the price has dropped and been factored in prior. However, let's imagine the data released at 1.5% which is worse than expected, you can expect the value to decrease majorly. On the other hand if the data was released at 2.5%, even though the interest rate still fell from 3 to 2.5%, it is still expected to see an increase in value of the currency due to the data being greater than the expected result. In other words, when data release is unexpected, you should expect great volatility in the markets. In the markets, it is important to always watch for the unexpected at all times. Data may be predicted to be very positive or very negative and once released it can be the total opposite. Don't get caught up in trading news as it is not suggested, however learn how to use the fundamentals to your advantage and imply them into your technical analysis.
UEducation
by opes_trading_group
How to trade fundamentals (AUDUSD BUYS)Hey traders! A common question I get is, do I trade fundamentals?? -From my experience it is to hard to trade off the back of data releases as the moves are to quick to happen and usually get very messy... -Fundamentals I believe just help push a currency in the right direction as technicals give us the entry points to catch these moves -For me its a rule to always have my stop-loss at breakeven when trading around the times of any news event or data release. -It is important that we always know when a big event or release is coming out to cover any trades we currently have running or are about to open, price can move so quick and cause slippage on accounts especially if you are over leveraged. -So the answer is I do and I don't trade fundaments, the aim of the game for me is to already be in a position with stops at breakeven to catch the bigger move but also protecting my account at the same time, at the end of the day we never know what's going to happen and price can do some wild things... ......... fundamentals overall control the market but technicals provide us with the entry points and create market structure.........
Education
by jamison_fx
14