The most important points to know about fundamental analysis and methods in the stock market

Fundamental analysis in stock trading is a method aimed at determining the value of an investment vehicle. This method assesses the investment vehicle’s past performance, the company’s financial status, economic conditions and sector trends to predict future expectations. The methods of fundamental analysis in stock trading include examining financial documents such as the balance sheet, profit and loss statement, and cash flow statement, evaluating market conditions such as the market price, volatility (amount of fluctuation in prices) and liquidity (volume that can be bought or sold) of the investment vehicle, and analyzing macroeconomic factors such as the economic conditions of a country and sector trends.
Examining financial documents such as the balance sheet, profit and loss statement and cash flow statement helps to reveal the company’s financial health and predict its future performance. The profit and loss statement shows the revenue earned from sales and expenses of the company, while the cash flow statement shows the company’s cash flow… GO TO THE NEXT PAGE TO CONTINUE…