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  1. #1
    Senior Member grindtime's Avatar

    Fundamental Analysis for stocks? !!!

    Ok so I'm starting to dig into fundamental analysis, as I focus on technical and I want to / have to apply both . I know we use economic news reports for FX but what tools are available for stocks? And where could I find them?

    I would think it would be easier to predict a price movement with corporations forecast and actual reports than it is with economic reports with FX yet I never hear anyone talk about fundamental analysis with stocks. Also is there a way to tell the actual movement of price from economic reports. IE: If US Rates are higher than forecast USD strengthens ? Or do we just pretty much know there will be movement following the release, up or down ?

    As I said I would think it would be easier to KNOW Apples stock is going UP if their earnings report is higher than forecast or at the release of a new product ect.. But never hear about fundamental analysis with stocks.

  2. #2
    Active Member RichardD's Avatar
    If you are thinking more of swing-trading, then combining fundamental and technical analysis may be a good thing. You could use fundamental analysis to decide which direction you'd trade in, and use technical analysis to find the best entry points for that direction. Fundamental analysis is not black and white either - just like you can't decide clearly what's a reasonable trendline to draw, or what's a reasonable, strong support/resistance level is, you won't know for sure a positive news would make the price go higher.

    As there's no easy product to trade with it's also not easier to predict movements with a different kind of forecast/report.

    Trends are much more common with stocks, and if you fundamentally analyze those companies ideally you are thinking 1-3 months or more. FX is different - much more hectic and traders think short-term, and well BO is mainly for FX pairs as you know so not many stock traders here.

    If you want to know how to analyze stocks fundamentally, I recommend you dig yourself into analyzing 10-K reports as the first step.

  3. #3
    Specialist Member LesterK's Avatar
    When we say fundamentals we don’t mean reading quarterly reports of the companies. They also have some influence but we are traders not investors waiting for many years to see how our companies are growing. Fundamentals mean short term market news, data or events. For example NFP (US non-farm payroll) is a big fundamental factor. Also some merging between companies or surprise with their earnings is fundamental factors that are driving the price short term. We have to always consider our time horizon. If we trade daily or weekly trades we are not interested in quarterly reports. Sometimes the effect of the news is absorbed very quickly from the market and is not tradable. Some times the effect can last for few hours or days and can be traded very well.

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