Showing posts with the label process-of-fundamental-analysis


USING FUNDAMENTAL AND TECHNICAL ANALYSIS In some ways, day trading is easy. Open up an account with a brokerage  firm and off you go, buying and selling securities! But how are you going to  know when to buy and when to sell? That’s not a simple matter. Most day  traders fail, because it’s easy to place the order, but hard to know if the order  is the right one. Traders use different research systems to evaluate the market. They have  access to tools that can help them figure out when a security is likely to go  up in price and when it is likely to go down. Research systems fall into two categories: fundamental and technical.  Fundamental research looks at the specific factors that affect a security’s   value. What’s the relationship between the trade deficit and futures on two- year treasury notes? What’s the prediction for summer rainfall in Iowa, and  how will that affect December corn futures? How dependent is a company on  new products to generate earnings growth