A brief introduction to fundamentals③

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Demand and Supply Fluctuations:

An effective method for the overall analysis of factors affecting the macroeconomy: Classification according to supply and demand fluctuations.

Demand fluctuations are events that affect the demand for products and services in the economy. Positive demand fluctuations include lower tax rates, higher money supply, higher government spending, and higher demand for exports.

Supply fluctuations are events that affect capacity and cost. Supply fluctuations include changes in the price of imported oil; natural disasters such as frost, floods, or droughts that wreak havoc on crops; changes in the education level of a country's workforce; and changes in the minimum wage rate at which labor is willing to work.

In general, demand fluctuations are characterized by changes in aggregate output that move in the same direction as interest rates and inflation. Supply fluctuations are often characterized by aggregate output moving inversely with inflation and interest rates.

In my opinion, when it comes to trading, it is necessary to judge the pre-influence of the fundamentals and the callback of the k-line trend to avoid big fluctuations! Steady profit!

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Last updated: 08/21/2023 23:35

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