What is Fundamental Analysis?


What is Fundamental Analysis?

The end goal of performing fundamental analysis is to produce a value that an investor can compare with the security’s current price. The basis of the analysis involves mainly the study of financial statements which focuses on the assets, liabilities and earnings to determine an intrinsic value

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Why the need to know Fundamental Analysis?

Many people think that they do not have any financial background and shy away from this topic. Think about this, famous and extremely successful investors like Warren Buffet and Peter Lynch trade using fundamental analysis tools. There are many others out there. Do you think you want to give up this subject altogether now?

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What if I know nuts about financial statements?

Financial Analysis indeed is a broad and deep topic which can take a relatively long time to master. You do not need to be an expert in this area to be a successful trader, however you will definitely need to know the key basics. You will get to see not only how you can overcome this fear without the need to dig deep into financial states and also tools that can help you get the required information at your finger tips.

Focus on the key aspects

All you need are a couple of financial numbers and a few finance ratios. These financial numbers and powerful financial ratios will be explained in the next section.  They can add value to your stock selection to create your stocks portfolio and also refine your trading strategy. Some quick and totally free tools will be shared, explaining how and where you can quickly pull out these data without breaking a sweat.

 

Read on

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