A fundamental traderA fundamental trader focuses their analysis on the elements ... More focuses their analysis on the elements of the overall economy or corporation and the specific factors within it, to determine the effects these have on the value of the economies’ currency or the corporations’ share priceWhat are value stocks? A value company is a company that app... More.
In forex, they will attempt to gauge the supply and demand of a currencyWhat is currency? Currencies are the generally accepted medi... More by analysing how strong an economy is and in turn the likelihood that investmentInvestment is the commitment of money or capital to purchase... More will flow into or out of that economy.
Fundamental analysts will make use of economic news and reports, decisions by central banks on and even the content of speeches by important financial authority figures or politicians.
When economic analysis reports are published, a fundamental traderWhat is a trader? A trader is a person who buys and sells... More will pay attention to:
- The actual results
- The difference between the expected results and the actual results
- The difference between the most recent previous results and the actual results
In , a fundamental trader will focus on the financial statementsA financial statement is a formal report detailing the fina... More, management of the company, competitive advantages and the competition that the company has, in orderWhat is a trade order? In trading, an order can be defined... More to determine the likely demand for the sharesWhat are value stocks? A value company is a company that app... More of the company and hence the likelihood that the value will increase under increased demand for them.
Further reading
Visit our fundamental analysisFundamental analysis involves studying the economics of a co... More module to learn about the fundamental factors behind currency priceWhat is price? The price is the measure of the value of good... More movement:
