Fundamental Analysis

Fundamental analysis is a critical part of stock analysis, along with technical analysis. Nowadays, there are many stock fundamental analysis software to help you analyze stock trends. Fundamental and technical analysis are two most basic types of stock analysis. Some stock fundamental analysis software makes the job very easy for investors. Investools is an example of a stock fundamental analysis software that pre-input the results of stock fundamental analysis for investors. Examples of fundamental analysis are fundamental analysis for futures commodities and Forex fundamental analysis. Using fundamental analysis to trade futures proves to be much more accurate than just using technical analysis.

Explain fundamental analysis

In stock fundamental analysis, the fundamental analyst assumes that every stock has an 'intrinsic value'. If you can find that intrinsic value of the stock the it is easy to see if you should buy or sell that stock. You will often hear the term intrinsic value in stock fundamental analysis as well as fundamental analysis for commodities, futures and options. We will discuss intrinsic value in a later section.

Explain with example fundamental and technical analysis

Stock fundamental analysis deals with earnings of companies. So fundamental analysts will analyse numbers in the financial statements as well as what is going on in the company. In technical analysis, however, analysts will look at charts primarily and calculate probabilities using advanced mathematics.

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