3. How to identify the asset to buy or sell?

You can rely on luck, play a coin, but you risk losing your investment, or trading at a loss. Most traders perform analyses to decide on the operation to make, whether to buy or sell an asset.

There are two main types of analysis: fundamental analysis and technical analysis. Fundamental analysis aims to identify "the true value of an asset". Fundamental analysis studies the economic and financial factors relating to the value of the asset. These factors can be macroeconomic factors, mesoeconomic factors such as those relating to a sector or the financial health of a company in the case of a stock.