Fundamental Analysis
There are two main categories of traders : fundamentalists and technicians. Fundamentalists are those traders who use fundamental analysis to predict price action , and technicians are traders who use technical analysis to predict price action. Today , a lot of traders use both types of analysis.
For now , lets review about fundamental analysis , which is based on economic factors.
Fundamental analysis is the practice of evaluating a company’s stock price by comparing base elements in the company’s balance sheets as well as general market factors. The main principle of fundamental analysis is to find profitable companies to invest in by comparing revenues , sales , management , etc. Fundamentals include earnings report , dividends , sales , inventories , profit margins , P/E ratio , market share , etc. …
Those looking to invest in a company will be the most likely to use fundamental analysis. This is because the research is used to not just look at the value of the company , but to look at the company itself. This includes …
