Ahmadreza Jabalameli

Trading experience

12 +
Since 2004

Teaching experience

1 +
Since 2018

Teaching to

8563 +
Students

Online Training

3000 +
Hours

What is fundamental analysis and how does it cause traders to fail?

What is fundamental analysis?

Fundamental analysis forsees checking financial statements and balance sheets of the companies.

Its purpose is to predict the future price based on evaluating success of a company in approaching business goals.

Anyone who wants to trade a corporate stock using fundamental analysis should keep up to date with the news and information published by that company, review the financial statements, and analyze the conditions of the projects and the factors influencing the progress.

Suppose you buy stocks in a company that purchases raw materials in dollars.

When the price of the dollar goes up, the volume of production will decrease accordingly.

In fact, a fundamental analyst tries to predict the future situation by analyzing the political and economic news.

I suggest you watching the following video to get acquainted with the main disadvantages of fundamental analysis:

Video

What are differences between fundamental analysis and technical analysis?

As we have said, fundamental analysis is based on checking financial statements and calculating past profits and losses. The value and intrinsic price of the stock are determined according to this information.

Meanwhile, technical analysts use different price charts and indicators to predict the future price.

They use various indicators to predict the future price with 20% probability and create the content for media based on this.

Obviously, we can never make a steady income in the market by trading based on the personal anticipation.

The main difference between fundamental analysis and technical analysis is that:

The fundamental analysts follow the financial statements and the news and factors influencing the stock, and after doing research, they decide to buy and sell, which has a very difficult and complex path to trade in the market.

The technical analysts also try to predict the future situation using various tools based on the past.

Neither fundamental nor technical analysis is a good option for trading and making money in financial markets at all.

Therefore, if your goal is to trade in the financial markets, put aside these both methods.

First of all, you must have the right plan, to achieve your goal.

There is a famous saying “A genius man gets lost in a big city without a map, but even an ordinary person can reach the destination with a plan of the city.”

The purpose of using a map is  finding the way to achieve your goal.

What is the solution? How to make continuous profit in financial markets?

With Jabalameli Price Action method, you can trade using no indicators or tools.

Jabalameli Price Action is based on analyzing the behavior of influential traders in the market.

It means that you can easily predict up to 70% of the future knowing the current situation in the market.

What is the best method to identify trading positions?

Note the following chart:

Look at the marked Zone 1.

Even if you are a beginner, you can easily recognize the market decline in the intensified area.

When a market decline occurs, it means the power of sellers has increased.

In the specified Zone 1, the power of sellers has increased as a result of which the market has fallen sharply.

In Zone 2, buyers started moving the price and tried to raise the price but could not.

Because the sales pressure has been higher.

Now all you have to do is to join the sellers and start making profit. You can enjoy spending money that you have made by your sales and purchases.

This is a very simple example of the power and simplicity of Jabalameli Price Action Method that I wanted to show you.

Having learned it, you can quickly look at the chart and quickly understand whether you have to buy, sell or wait.

Complete Training of Jabalameli Price Action Trading Method (Free)

Conclusion

As we have said, fundamental analysis foresees considering financial statements and balance sheets.

It can be used in all financial markets, but that does not mean that you can use it to make money in financial markets.

Time is the most important asset of yours.

Instead of spending your time on analyzing some doubtful factors, it is better to trade directly.

Jabalameli Price Action Trading is a way that can really make you a professional trader. And it can be done much faster than you might ever think.

What is your opinion?

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