Fundamental Analysis

Fundamental analysis is a school of market analysis that’s largely concerned with the actual economic conditions “on the ground”, so to speak.

In stark contrast to technical analysts who are only concerned with price action, fundamental analysts like to dig into the real factors driving assets to rise and fall.

These can be anything from supply and demand to consumer prices and changing interest rates. In stock trading, fundamental analysts seek to dive into a company’s balance sheets, debt ratio, production efficiency and so on.

For this reason, the economic news is very important to this type of market analysis. In contrast to technical analysts, who only need to be aware of what’s taking place on the chart.

Fundamental analysis has to be much more informed about a much larger number of things, from the broader geopolitical climate to very specific performance metrics of the assets that they trade.

visa mastercard paypal transfer skrill sofort giropay trustly

Open your EverFX account

It takes only a few minutes and even fewer clicks to enter the promising and exciting world of trading. Take the first step by clicking on the link below.
Trading involves significant risk of loss
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure