USING FUNDAMENTAL AND TECHNICAL 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