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Why is fundamental analysis important?


Fundamental analysis gives you the actual reason of why assets move. For stocks, it is the intrinsic value of the company and thus over time, the price should slowly revert to that value (that can vary through time). With currencies, fundamental analysis is mainly used relatively and through many macroeconomic models that compare countries with each other. With commodities, fundamental analysis is mainly a supply and demand forecast.

The order of importance does not matter just as long as you put fundamental analysis first when dealing with long-term views.

Always do your due diligence.

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