Fundamental analysis and its role in trading

Fundamental analysis is a method of analysing financial markets based on the assessment of economic, financial and political factors affecting asset prices. The purpose of fundamental analysis is to determine the intrinsic value of an asset and to identify undervalued or overvalued assets in the market.

Fundamental analysis tools

The main tools of fundamental analysis are economic news, corporate earnings reports, macroeconomic indicators and geopolitical events. Traders use this data to assess the fundamental health of the market and make decisions about entering and exiting positions.

Fundamental analysis is widely used in the market for stocks, bonds, currencies and commodities. It allows traders to identify trends and investment opportunities based on fundamental data.