Fundamental Analysis

fundamental analysis

How to Add Fundamental Analysis to Your Trader Toolbox: The Basics of Going Beyond the Charts

While we use technical analysis to enter and exit our trades, there is always a story behind the charts.

There are underlying reasons why price move the way they do. If you understand the reasons why prices move, you’ll be better equipped to to take advantage of the price action.

You’ll see things coming that others just can’t see.

While many of us gravitate to the visual aspect of trading, an understanding of the fundamentals is necessary in order to achieve a well rounded perspective.

Like an athlete who works hard to perfect different aspects of his or her game, a good traders knows and understands both the technical and fundamental aspects of trading.

Why Following the Big Money with Fundamental Analysis is a Key to Confidence

Ever wonder how to know if your bank is getting “stronger?”

In this lesson I want to introduce you to my follow the money philosophy; the flow of money that is created by interest rate differentials in various countries.

Hang with me here, it’s easier than it sounds.

Let’s make it a story that hits close to home for you- determining which bank you should choose for your savings account investment…

What is a Central Bank?

A central bank is responsible for monetary policy. A fancy word for many of us but in this lesson we will relate it to the interest rate you pay on your mortgage.

Monetary policy could best be described as the management of the money supply and interest rates to influence economic activity.

Can you imagine having the power to “influence the economy?!” Continue reading about this fascinating subject that affects all of us…

Understanding Economic Indicators

What is an economic indicator and what does it tell us? Why should I care? How do they influence my daily life?

Think of it as a report card for a particular section of the economy. There is manufacturing, employment, housing, construction and things like that.

To gain conviction to support a technical idea, it helps to understand the basics of a report that could influence a group of stocks you may trading. To take it to an advanced level, knowing the indicators could lead you to NOT taking your next trade!

Read on…

Quantitative Easing 101

What is QE2? What does it mean if the banking system is “cash-starved?”

When would banks need help to build up their cash reserves?

Sine the financial crisis of 2007, quantitative easing is now a common term; at least we have all heard it one time or another.

Continue reading to find out how the process plays out and why you should understand the basics…