Hey, everyone Ross here from Warrior Trading, so I want to talk for a moment about fundamental analysis. There are sort of two camps when it comes to trading and even short term investing. The first camp is in fundamental analysis, and the second is in technical analysis. Fundamental analysis is when you're reviewing sort of the fundamentals of a company, and this comes down to reading their earnings reports, reading their press releases, understanding what their balance sheet looks like, what type of debt they're carrying, what their free cash flow looks like, the P/e ratio, Things like that.

Now, this is something that a technical trader might not ever even look at because they're focusing on more of the technicals. In terms of the chart, the moving averages some of the technical indicators. Now, when it comes to fundamental analysis, one of the things that's nice is that from within your trading platform, you'll see a news window And that news window when you pull up a stock will give you all of the recent headlines. So if you see a stock like Apple or Facebook or whatever, the stock maybe is up four or five percent today this morning and you see there's a headline there, it's a good chance that it's the market reacting to that fundamental news catalyst.

So fundamental traders are really trying to get a sense of how strong the company is from a financial perspective, and what could be coming in terms of upcoming press releases, new contracts, new orders, sales volume, market fluctuations, and and things like that. As a short-term trader, one of the things that you'll learn is that fundamentals. well, they do matter in the long run. In the short term, the market can be irrationally strong or irrationally weak despite really good or really poor fundamentals.

So there's sometimes a a sort of divergence of what the fundamentals say that the stock should do and what it actually does. And so that's why a lot of short-term traders end up falling more into the camp of technical analysis, while mid term and longer term traders and investor focus on fundamental analysis I Hope this has helped you, and as usual, any questions, don't hesitate to reach out if you're still watching. You must have really enjoyed that video. So why not subscribe and get email alerts anytime? I Upload new content.

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