Fundamental Analysis

Fundamental analysis is a school of market analysis that’s largely concerned with the actual economic conditions “on the ground”, so to speak.

In stark contrast to technical analysts who are only concerned with price action, fundamental analysts like to dig into the real factors driving assets to rise and fall.

These can be anything from supply and demand to consumer prices and changing interest rates. In stock trading, fundamental analysts seek to dive into a company’s balance sheets, debt ratio, production efficiency and so on.

For this reason, the economic news is very important to this type of market analysis. In contrast to technical analysts, who only need to be aware of what’s taking place on the chart.

Fundamental analysis has to be much more informed about a much larger number of things, from the broader geopolitical climate to very specific performance metrics of the assets that they trade.