<p style="text-align: justify;">Trading analysis is used to review the financial markets and make sound investment decisions based on the findings. It is a popular technique used by many serious financial traders across various markets, with plenty of tools available to help get started and begin making a profit, whether trading currency with Oanda or stocks and shares. For SMEs, trading analysis can be used to help boost your small company in a few ways.</p>
<h2 style="text-align: justify;"><strong>Technical vs Fundamental Analysis</strong></h2>
<p style="text-align: justify;">There are two main types of trading analysis that can be used; technical and fundamental analysis. Technical analysis attempts to forecast future price movements based on previous price changes, while fundamental analysis involves analysing financial statements, earnings and other business statements, data and information to assess its value.</p>
<p style="text-align: justify;">There is some level of overlap between the two methods, they are not mutually exclusive. Both these types of trading analysis can be used to help an SME, though it is fundamental analysis that will prove much more useful. Analysing the economics of your SME this way, based on financial statements, earnings and more, can provide a good idea of your current performance and highlight any required changes.</p>
<h2 style="text-align: justify;"><strong>Predicting Price Movements</strong></h2>
<p style="text-align: justify;">Predicting price movements can be done through technical analysis and, depending on the industry your SME is based in, prove useful for getting an overview of the current market. This is essentially analysing the existing supply and demand in the market, to forecast which direction prices will be heading.</p>
<p style="text-align: justify;">For example, if your SME relies on buying certain commodities or other supplies, either to create a product or sell on for a profit, technical analysis can help predict price changes. You can then adapt your financial plan appropriately, whether it is to change your budget or cash flow so you don’t get caught out by an increase in price. Or, to take advantage of a drop in value.</p>
<h2 style="text-align: justify;"><strong>Develop a Trading Strategy</strong></h2>
<p style="text-align: justify;">For SMEs, trading on the financial markets can be an excellent way to make a little bit of extra money. Whether to top up an already profitable business or diversify investments, you will need a strong trading strategy to avoid losing out.</p>
<p style="text-align: justify;">Trading analysis is a great way to help develop a successful trading strategy for your SME to use. Through analysing previous price movements along with the economic data from certain companies, you should be able to find wise companies whose stocks and shares will be worth investing in.</p>
<h2 style="text-align: justify;"><strong>Reducing Risk and Identifying Opportunities</strong></h2>
<p style="text-align: justify;">If your SME is hoping to expand, then trading analysis can help highlight areas of the market where prices are predicted to increase. Making the most of the right indicators could show that certain currencies, stocks, commodities and more may be set to rise in price, so investing or expanding your product offering to include these, could see you profit at the right time.</p>
<p style="text-align: justify;">On the other hand, if certain prices are set to fall then you can plan for this and reduce the impact it might have on your SME in advance. Use trading analysis wisely to help boost your SME and avoid any financial troubles.</p>

Using Trading Analysis to Benefit Your SME
