Hello, and welcome to this latest edition of courses on demand brought to you by Forex dot Academy in this course, we will be discussing fundamental analysis, and decision-making volume 2! This does lead on from fundamental analysis, and decision-making a volume 1. Now, there is, of course, inherent risk when trading, the financial market. So, just before we begin, please do take a moment to familiarise yourself with the following disclaimer.
Now in focusing our attention to the study of fundamental analysis, and decision-making, we will be taking a closer look particularly at fundamental analysis, and the risk environment. With that risk environment, we need to understand, and analyse economic data, and understand how changes in economic data actually affect price over a range of asset classes we will be looking at trading, opportunities such as buying the rumour, selling the fact! It often occurs across those financial assets whether its Forex or, particularly in equity trading, where traders position themselves, and actually trade-off a rumour, and then had traded the opposite side of the news story once the fact emerges into the marketplace. We will then be looking at trading, behavioural finance, and that does continue on nicely with avoiding unnecessary market traps. Particularly for those beginner traders, and then we’ll be finishing off the lesson with fundamentals on timing, and obviously, one of the key skills to learn as a financial trader, and whether you’re a fundamental or, technical or, both is when to effectively have good timing! When to enter the markets, and early enough so that you’re getting a good price that you desire. Whether you’re deciding to buy the market or, sell them at the market, ie short sale, timing is crucial for financial trading. We will be discussing the fundamentals behind that fundamental analysis and risk environment in conducting our fundamental analysis, what do we aim to do? Where are we aiming to arrive at an underlined fair value price? That’s really the motive for fundamental analysis. Whether you’re deciding to fundamentally analyse stock price, you have to understand the growth potential of that company. The competitor environment with which it operates, and those business many factors to actually come to a fair value price, what you believe your analysis tells you that the price should be if that is the case then you can make trading, opportunities as a result you know given that something might be overvalued or, undervalued another’s particular for equity trading, but, has most certainly strong strengthen in construct when looking at commodity trading, as well particularly for assets like the soft commodities corn weak to sugar things like that however before we consider trading, the asset it is important to gain an understanding of the current market sentiment, and its tolerance for risk this temperature test is known as assessing the risk environment. So, there always is a risk environment in the markets current market sentiment, and we need to understand, what it is there’s a current appetite the current market appetite for risk has real fundamental power over asset prices from currencies to commodities to bond markets to equities all asset classes follow suit to the underlying risk environment markets will experience them two main appetites for risk. So, first we have risk on, and second we have risk-off. Let’s first look at risk on risk-on environments are often carried by a combination of expanding corporate earnings optimistic economic outlook accommodative central bank policies, and speculation yes fairly straightforward. So, when we are in a period of economic growth, and relative strength we can see that the economies are improving we’re likely to take more risk as traders particularly for risky assets perhaps like equities or, our risky commodities, and that will be looking to obviously deliver more profit a rate of return a higher rate of return for that added extra risk that we take as traders, and that is the time when we’re experiencing this potentially growth, and very strong growth periods will be looking to add risk and speculate as a result as investors feel the market has been supported by strong influential fundamentals they perceive less risk about the market, and its outlook, and are more willing to take on risk absolutely that’s absolutely the case for traders as perceived risk Falls in the market investors assume a higher risk tolerance volume, and interest will increase for riskier assets like equities, and high bonds, and that’s absolutely the case we have a large increase in interest for risky assets very risky potentially very risky equities could be you know not particularly S&P; 500 foot lower denominations of equity indices where you often see capital flows go in across nations, and in terms of a good trade business between regional nations, and obviously that the aim of those trades is to look for higher rates of return when we do see, and I suppose a risk off approach which we’ll be discussing. Now, we do see that money retract, and actually pull back contract from global investment stocks it’s definitely worth noting as a trader stocks our equity markets are generally seen as riskier assets than bombs, and if we think, what a bond structurally is it’s a debt instrument perhaps we’ll take an example of a ten-year dated bond, and for the German bond.
The German government it’s effectively a loan of 100,000 pounds on one year bond that you’re giving the German government, and within that ten year period, they’ll be making repayments that will hopefully come to around to 3% at nominal levels over the duration of the loan or, the bond purchase. So, it’s not a sort of fantastic rate of return 2% over such a long period of time ten years, what we do have to do is invest in equities something like an equity so, you could return we look at Amazon this year returned over 50% in 2017. So, absolutely fantastic returns are available for those, and very strong yet, curiosity classes let’s have a look particularly at a risk-on example, and it really sends as a signal to, what the current appetite or, tolerance for risk is in the marketplace at this time. Now, I’ve chosen this market in particular at the Euro Japanese yen because it has very strong attachments to the risk-on risk-off approach particularly because, and well this move itself will be described as you remove as I will also will discuss through the chart however the Japanese yen how the currency itself is known as a safe-haven currency. Now, what that means guys is that when there is huge uncertainty in the markets you see capital flight push capital towards, and things like gold has a store of wealth, and also currency like the Japanese yen and. So, one example could be when there’s a very strong equity sell-off, and capital flow will go into Japanese, and just to store that as cash for a while before markets come back to a high level or, a tolerant level of risk. So, this is the Euro against the Japanese yen. So, what we’re trying to do is currency traders is trade strength first weakness. So, it’s the perfect example here to show you a European example approach to a risk on trade here we have the French election. Now, if we do recall back we had the far-right Marine Lepen, and against many other competitors, and, what who won was Emmanuel Macron who was regarded as a good friend to Europe he wanted to push on, and continued growth in the European eurozone economies, and was healed as a very strong politician in terms of focusing on recovery as opposed to immigration law, and other things. So, what we see is the French selection here 2017 the market the Euro yen is just bouncing from lows then we see a bit of a shock surprise in the French election the bullish mark up as the market jumps over the weekend we see the market, and open up many takes higher, and just on the open on Sunday night there, and after the from the weekend in France that’s very significant technically but, what we’re trying to do here is analyse this fundamentally, and make decisions. So, what is the story behind this trade well the surprising, overwhelming support for Emmanuel macron led to him and taking the French presidency of May 2017 as a politician focused on European growth and diplomacy his campaign was very different from foreign opposition leader Marine Lepen the market sentiment quickly turned to risk-on environment. So, we have a risk-on environment in Euro in euro-denominated assets, ie the euro currency that will lead to euro price increases at the same time we have risk on sentiment pushing back in filling those greedy investors with risk-on sentiment, and we see money retract from the Japanese yen itself. So, it’s a real story of risk-on sentiment changing the market structure, and changing the actual currency pair strength versus weakness we see a very strong definitive trend, and that’s really the start of it in the Euro Japanese yen let’s move on to risk-off risk off environments can be caused by widespread corporate earning downgrades contracting or, slowing economic data uncertain central bank policy a rush to safe-haven investments, and many other negative economic data as perceived risk Rises investors sacrifice return for safety. So, risk off is obviously the opposite of the risk on risk tolerance scale we see investors really sacrificing their 1 for capital their 1 for profit for a return to safety they want to store their profits gained throughout the financial trading, year in a safe haven currency or, commodity some investors harness risk off trading, in an effort to meet their investment objectives this particular strategy hinges on the broader sentiment of the global assets market with a belief that the rising or, falling confidence of investors can motivate them to fail one asset class over another absolutely, and again to reiterate a good example of this is capital flight to safe haven assets can often occur we see the gold market we see the Japanese yen market we see bond markets or, Treasury the Treasury markets in the US a lot of capital goes into bond markets during times of uncertain an indicative of current market sentiment a tolerance for risk at that time I want to point out this risk-off example I don’t need to go through it into too much detail I know you’re really all aware of this the 2008 financial crisis was considered a risk off year an entire year whereby investors aimed to reduce risk by selling all speculative or, risky investments, and move money into non risk positions. Now, apart from the obvious why do we think this could happen well obviously we have Lehman Brothers one of the largest investment banks historically, and very traditional investment bank on Wall Street actually collapsing something that has really never happened before, and sends a huge shock down the market in terms of investment, and retail banking we then see throughout the year I’ll see the financial crisis ensuing but, as a trader or, as a vaster or, portfolio manager owning all these asset classes perhaps an even in a diversified portfolio we see a real attempt to reduce risk by selling all speculative risky investments, and, what we want to do there in this case when we have a risk-off approach is move money into non-risk positions or, non-risky assets to keep them only safe to look for capital protection not necessarily always looking for those profit opportunities when they’re just not available to us in the marketplace.
Now, it should be said that when we understand the risk-off approach in terms of risk tolerance we can then look for those assets perhaps like gold like or, Treasury bonds to actually look to follow that momentum to the downside or, upside in those in those assets themselves let’s go through some economic data it’s very important that we have a real contextual idea of, what economic data moves markets throughout the eurozone throughout the world, and throughout domestic economies in terms of structuring interest rates, and structuring perceived, and ideas of support, and growth within an economy in fundamental analysis, and decision-making we established that knowledge is power for the fundamental trader your ability to analyse economic data with its fundamental effect on asset places, and in relation to the current market sentiment is Parliament to trade in success that’s absolutely the case. Now, let’s discuss many of the economic data variables that are essential to the economy, and to us as financial traders Consumer Price Index or, CPI it’s the change in the price of goods and services purchased by consumers the CPI accounts for the majority of overall inflation, and inflation is important to currency valuation as rising prices lead central banks to raise interest rates in keeping with their mandate for price stability let’s not forget that central banks have mandates to keep prices across the domestic economy stable. So, there isn’t a huge amount of fluctuation, and both in the currency and with the level of overall goods within that economy. So, it’s crucial in terms of interest rates, and its effects I’m novice Lee as a currency trader we need to know and understand consumer price index crude oil inventories obviously this figure will be subject to you deciding to trade, and the WTI crude or, perhaps Brent crude oil, and markets, what is it well the crude oil inventories is a change in the number of barrels of crude oil held in inventory by commercial firms during the past week. So, it’s every week this figure is in earnest I believe every Wednesday at 3:30 at UK time it influences the prices of oil, and all other petroleum products it also has a very strong impact on growth as many industries rely on the commodity to produce goods employment change it’s very simple it’s the change in the number of people employed and is a key indicator to reflect labor market conditions, and the overall health of the domestic economy particularly it would be very important in those economies that are perhaps experiencing very disparity in levels of employment, and if they’re not picking up with the rest of the eurozone perhaps at the moment we look towards those indicators to show an overall level of growth in other eurozone, and eurozone block. So, that those employment change figures would be significant from many other different, and nations across, and across the globe really, and in terms of just looking at one domestic economy GDP or, otherwise known as gross domestic product it’s the change in total level of output produced by an economy it is the broadest measure of economic activity, and the primary gauge of the economy’s health. So, that is, what we use, and others the certainly the figure that we use to describe, and the business cycle whether we are in a period of recession whether we’re in economic boom or, whether we experienced in the slope a slump will be obviously negative GDP where we fall back into recession and continue to slide. So, it’s the broadest measure of economic activity, and obviously, kid is the health of the economy. The Germans are ZEW. It’s a key sentiment indicator based on German institutional investors are analysts the reason why it is so, significant. Well, it’s the actual investment analysts not have a say that I have the input into the indicator itself it is a leader in leading indicator in terms of economic health but, those analysts have the know-how they’ve been in the market, and financial markets for a long time and the record is experts within the field.
So, their sentiment is often seen as an early signal of future economic activity ever MC well the FOMC it roughly comes around yeah it’s announced eight times a year the FOMC usually changes the statement slightly simply with the wording in the statement at each release, and this is to reflect changes in economic performance, and guidance it is the primary tool the FOMC, and uses to indicate monetary policy. So, for those u.s. traders, and obviously the world looks as the US economy looks towards the US economy as the biggest and most productive economy in the world, and to show signs to the rest of us in terms of global economic growth. So, very significant indeed non-farm payrolls again a huge economic figure in the United States it’s the change in number of private-sector jobs from the previous month in the US economy, and it is of course worth noting that that does not count for farming jobs they’re actually not counted within the NFP figure the NFP figure is considered the most vital data of economic performance in the US, and is released after the month ends as a result job creation is of huge importance to the US we see that figure come out on month, and relative to the month just before, and we see how that the labor market conditions are improving or, disproving across the United States manufacturing PMI is a survey of purchasing managers in the manufacturing industry why would that be important well it does give us a significant insight from corporate ok the corporate America or, corporate Europe or, wherever the purchasing managers index is coming from ours business reacts quickly to market conditions it’s a leading indicator of business performance, and has a relevant insight into the company’s view of the economy perhaps one of the most important again official bank interest rates, and this is of keen significance over the next coming a two to three years the interest rate at which central banks lend to all other financial institutions, and obviously these interest rates trickle through the rest of the economy the whole financial services sector lead even to formulating your interest rate on your mortgage, and your car loan, and many of these diversified products that are offered in retail banks short-term interest rates are the Paramount factor in currency valuation traders more often will look to other indicators to predict how these rates will change in the future, and last but, not least we have retail seals changing the total value of sales at retail level it’s the primary gauge of consumer spending which accounts for the majority of overall economic activity another is a very important gauge consumer spending when we have something like a credit crisis which we experienced not. So, long ago there are as a byproduct of the financial crisis we look towards gauging consumer spending to see if growth is starting to spark again, and come back into the economy let’s have a look Now, buy the rumour, sell the fact, and how market participants can gear up for these trading, opportunities buying the rumour, selling the fact is a piece of trading! The device developed in early stock market trading, it relates to a situation where the price of a stock would move higher due to traders buying because of rumour, they simply heard about possible company acquisitions or, higher than expected earnings reports. So, there is many many different examples there that could start the rumour, mill where traders would actually say to trade off these rumours, and actually position themselves in the market with the impression the rumour, will eventually come true actual Bayside volume is created. So, that’s, what happens. Now, it should be worth noting depending on the rumour, sell-side volume can be, and created as well it’s not always on the buy-side particularly it has more of a common approach to Bayside volume when we discuss buying the rumour, selling the fact, and equity trading, inevitably when the news or, economic event occurs, and the rumour, turns out to be untrue the sell the fact sentiment takes hold of the market the company earnings perhaps come negative which causes a quick sell-side shock to the market in question.
So, that’s classic example of hearsay where traders interact with the market based on a rumour, of a possible acquisition or, perhaps very good earning reports when the fallacy turns out to be untrue then the market, of course, reacts differently, and then the trade is to sell the fact, and we have a picture here with our financial traders particularly I think equity traders, and I would like to just read the quote at the bottom indicative of high market participants can gear themselves, and trade-off hearsay, and rumours the good news sir is that Harris was able to sell off or, losing stock the bad news is that Simpson here bought them from Horace. So, there is certainly indicative of how market traders can involve themselves willy-nilly trading, off rumours I’m actually looking to profit, and speculate from such rumours but, then obviously the sell-side factor may come in when the story unwinds it should be worth noting in the forex markets buying the rumour, selling the fact is interpreted differently mainly because rumours are not as common on the vast number of variables affecting forex markets would make it very difficult for a rumour, to cause any real momentum or, movement in price. Now, unless the rumour, is an absolutely huge groundbreaking rumour, that will totally rearrange the forex markets it is very unlikely that it will cause sustained or, a very large shock to price in a forex markets given the liquidity, and given the depth of the forex markets indeed the forex equivalent to buy the rumour, sell the fact is to trade in anticipation of current news releases traders often see news releases as a way of making a lot of money very quickly. Now, it’s not always the case but, many traders do take very small positions in pre-emptive positions before news relations are about to occur an economic announcement like the month the monthly non-farm payrolls figure can call dramatic changes in asset prices, and many traders conduct fundamental analysis, and trade in anticipation of speculative prices by the time the news has been released many traders have traded based on the forecasted number, and are. Now, ready to sell a fact. So, let’s just rewind let’s just think about this for a moment we have perhaps a non-farm payrolls we believe it’s going to be very strong given the forecasts, and before the figure comes out we actually make a trade as a trader as a fundamental analysis under decision-making, and we’ve actually made a pre-emptive decision to enter the market before the figure we’re not guessing we’re using our fundamental at discussion of the markets in question, and positioning for the move itself. Now, the figure may come out I’m very positive indeed we’re on the right side of the market well that’s fantastic the market trades up, and we’re in a profitable position, what is our decision. Now, well obviously if we decided to many traders could have very well made the same speculative position we could sell or, trade for a nice profit, and then, what we could do is actually sell the fact we could look for a pullback in that price given that many traders may have expected or, the market has already pressed in this move to the upside, and we know you’re looking to sell the fact, and more often than not we actually do see very strong pullbacks in trades like this. Now, as it is our quest as fundamental analysts, and economic decision-makers to look for these trading, opportunities fundamentally, we must involve trading, behavioural finance into our decision-making. Now, why is that the case will be just discovered how rumours can affect the market, and how selling the fact then can be the reverse side of that trade on the trading, floor all action is based on news therefore rumours in the financial markets have become almost a daily phenomenon if we think of rumours as a form of behaviour we know that rumours are one of the oldest mass mediums of communication in the world, and that’s most certainly the case if you ever recall any old wife tale that you’ve probably heard, and it’s probably from hundreds of years ago, and that’s the rumour, mill that keeps these stories in motion that’s no different to all these rumours that circulate the financial markets only in much shorter timeframes we include this concept with the probability of making money it is easy to see then why rumours can have sudden such a sudden, and effective impression on financial markets, and that’s certainly the case imagine a rumour, that can circulate, and effectively give people information that they can make money from well that’s indicative that’s exactly, what happens in the financial markets, and why many market participants trade, and position themselves prior to the actual news event, and actually trading, the rumour, itself let’s observe how some markets can actually react to these rumours.
Now, I have a few setups here to go through we have the Nasdaq 100 which is the tech-heavy US equity index, and here we have some very inconsistent price action albeit to the upside there’s a lot of volatility, what is the story behind this rumour, well in early December 2017 CNN reported that FBI director James Comey was going to testify to Congress President Donald Trump was heavily involved in pre-election diplomacy with Russia that led to election rigging. Now, a very serious piece of news I’m outlining an implicating Donald Trump in election rigging if that’s the case I would assume the markets would would see a really strong sell-off but, again we’re just reacting to a rumour, here technically we see some weakness to the downside already when the news breaks this is the candle here where we see significant price action, and it really tells a story within that trading, period, what happens is the price action trades down to new lows a lot of weakness there but, within the rumour, within the real trading, day we see a full retracement almost two opening levels on the market closing just below those levels then we see a very bearish candle, and just thereafter with em somewhere indecision within, and the two to three day trading, period very technically significant if you actually look at that as technical analysts but, what does it tell us in terms of the rumour, mill, what does it tell us in terms of the story behind this well obviously as market participants how did we trade this we sell the rumour, when we hear the rumour, that is such a fundamental break, and in terms of scandal in terms of how we perceive the President of the United States, and how that affects equity prices we see a strong sell-off but, effectively we’re selling the rumour, here it’s a CNN report unconfirmed then as the story emerges at the end of the week President Trump it had emerged had simply pushed him to end the FAA investigation early but, was not implicated in any scandal, and of course, what we see is by the fact with some very strong, and trading, to the upside in the in the overall trend we see it just a trace I can use my epic pan here just to actually show this by the fact literally from our indecision candle here we see a very strong trend back to the upside as a by the fact sentiment really starts to dominate market interaction there in discussing trading, behavioural finance we can look towards a second example another fascinating rumour, here we have AM t-mobile in the US a telecommunications company, and some really an unquantifiable news about a possible merger with AT&T; one of the rivals on another big provider within the telecommunication sector in the United States we have on covering AT, and t-mobile discussing merger talks in an effort to better compete with competitors, what do we see with the price action we see a by the rumour, mill starting already we see a albeit from 61 around 61 to $63 jump within a very short period of time, what happens, and, what really unfolds within the story is the rumour, turns out to be true but, despite the talks both parties both parties very quickly filled to reach an agreement, and the merger feels, and then the sell the fact trade comes straight into the marketplace, and as those early just think about, what happens there in terms of trading, those early market speculators buying the rumour, albeit proof right the market direction is clearly not with them, and they have to get out of those positions that allows them to sell their positions, and it allows a lot of new sellers into the market to drive those prices down to new lows there early November at 2017 in terms of fundamental analysis on decision making how do we avoid market traps well we have a legendary British American investor, and professor here Benjamin Graham give us some fantastic insight through the market he has a very famous quote observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions another’s indicative of doing your due diligence as a fundamental analyst, and making those well informed decision making, and trades particularly when we are in times of very strong economic boom a lot of traders simply believe prices will still go up no matter, what the asset they decide to trade or, no matter, what the equity they decide to trade that is not the case certainly we do our due diligence for each particular fundamental trade in each particular asset our market in question as fundamental analyst it is essential we focus our decision-making on all fundamental news affecting the price all the assets we must never rely on any one variable, and that’s certainly the point we’d like to make there how do we avoid these necessary, and are these very common market drops, and particularly as beginner traders well a few points to look out for avoid trading, with the domani, and this is indicative of actually looking for good trading, opportunities as well but, we try, and trade with this smart money in reverse we do not want to be the last person buying a very strong move to the upside or, the last person selling a very honest, and weak move to the downside. So, avoid trying to jump in, and chase the markets, and obviously that leads on to a second point being the Dom only following in being the last, and rap to jump ship when the ship is going down is not the way the wisest trading, decision indeed always protect your trade with stop-loss no we will have plenty lessons on risk management coupled protection is absolutely key empowerment to your trading, success in terms of avoiding those market traps always protect your trade with the stop-loss do monitor the markets at all times, and a key point here is do not become a victim of overconfident analysis. So, again relating to the point of the webinar fundamental analysis, and decision making well obviously we need to monitor the markets another’s one downside I would certainly say two fundamental analysis that many traders do a lot of research a lot of to diligence in formulating trading, decisions, and because they put a lot of time, and research into the market they cannot take a looser way in the market proves them wrong. So, do not become a victim of overconfidence analysis, and always monitor the markets learn to combine the fundamental decision-making with technical decision making, and that lends itself to always trying to stack the odds in your favour as a fundamental, and technical trader to heighten your probability of successful outcome fundamentals, and timing absolutely a key aspect to financial trading, are given the fundamental analysis aims at having specific expertise in certain markets this knowledge factor will help the trader to enter the market at a more specific time period. Now, it’s a very difficult feat or, arm challenge that lies ahead but, it is indicative for some markets where your fundamental analysis on your expertise will heighten your probability or, heighten your skills in terms of timing, and entering the market. Now, that does sound difficult but, let me give you a few examples seasonality is the phenomenon that causes crop prices to behave in a relatively predictable manner year in, and year out. So, if you are a fundamental analyst, and you are studying perhaps the soft commodities, for example, wheat sugar a corn coffee commodities like these are very seasonal, and in relation to the weather on the nation which where they are grown. So, your analysis will take a lot of a fundamental bearing on the supply, and demand functions of those crops, and as a result of the seasonality factor, and underlying the the price of those assets changing year in, and year out, and obviously in terms of timing it will allow you to focus on a more specific time period to actually looking for those trading, opportunities microeconomic trends indicate consistent growth consistent economic growth and. So, equity investors activate a buy the dip mentality again if we know that we’re in a very strong macroeconomic trend to the upside current market conditions are strong we look for perhaps those market Corrections or, are those times when short term price fall is that they do send the markets a little lower, and those can provide us with buying opportunities fundamental buying opportunities certainly and would be the decision their bond yields react to interest rate changes, and in theory conform to a yield curve. Now, quite complicated generally bonds yield curve, and which simply means that they have different durations to the bone structure, and we’ll pick a bond to let’s say that the german bond has a two-year a 5-year a ten-year, and a 30-year am duration all together that will create a yield curve reflecting the yield on the price of the bond, and its rate of return on the bond itself. Now, in terms of actually trading, and looking for timing trades we know that, and these interest rate changes affect price, and affect yield, and when there is a divergence from the yield in one duration or, another it is to converge back into a nominal yield curve those can allow us fundamental trading, opportunities should we understand better the expertise in the bond markets indeed timing, and this is the mean point timing is always the most difficult, and sought-after skill for financial traders nuts absolutely the case if everyone had perfect timing skills we will all be making a lot of money in the financial markets knowing when exactly to enter the markets before prices move soon after would deliver the sharpest of trading, edges as we are not able to consistently do this we must focus our attention to stacking the odds in our favour both with fundamental knowledge of the markets on how they react to news events, and with technical insight into price movement itself. So, all combining we need to have a full combining fully broad-based approach to our fundamental analysis, and to allow well-informed decision makings that’s the real point, and to actually construct well the form decision makings when entering the markets. Now, that concludes our study on fundamental analysis, and decision-making volume 2 in this webinar we looked at fundamental analysis on the risk environment, and obviously that considers and takes a fully broad approach to risk off sentiment, and risk on sentiment in the market we discussed analysed economic data, and how they affect market prices we looked at buying the rumour, on selling in fact, and how they actually both provide very good trading, opportunities when we know that our fundamental analysis is not in sync with these opportunities we looked at behavioural finance in trading, and how that can lead to trading, opportunities as well, and moved on quite nicely there we looked at avoiding market traps to try, and avoid those very common pitfalls beginner traders all see occur when entering the financial markets, and then last but, not least we finish off with fundamental timing we can agree that timing is the most difficult skill when deciding to trade the financial markets but, with a keen eye to your fundamental analysis approach, and we look to have well-informed decision-making skills, and obviously out some technical analysis in there as well to stack the odds in our favour thank you very much for joining us on this instalment of courses on demand brought to you by forex tell academy we do hope to see you very soon bye for now.