What is Fundamental Trading?
Fundamental trading , also known as fundamental analysis or fundamental investing, is an approach to financial markets that involves analyzing and evaluating the intrinsic value of an asset, such as stocks, bonds, or currencies. The fundamental trader seeks to understand the underlying factors that drive the value of an asset and make investment decisions based on these factors. Key elements of fundamental analysis include: Economic Indicators: Fundamental traders often look at various economic indicators, such as GDP growth, employment figures, inflation rates, and interest rates, to gauge the overall health of an economy. Financial Statements: For stocks, fundamental traders analyze a company's financial statements, including the income statement, balance sheet, and cash flow statement. This helps them assess the company's profitability, financial health, and potential for future growth. Learn How To Trade Today! Earnings Reports: Traders pay close attention to a company...