What fundamental analysis techniques are suggested for a newbie in the stock market?

#2
Re: What fundamental analysis techniques are suggested for a newbie in the stock mark

easy read books for fundamental analysis

The Warren Buffett Way
WARREN BUFFETT AND THE INTERPRETATION OF FINANCIAL STATEMENTS
 
#3
Re: What fundamental analysis techniques are suggested for a newbie in the stock mark

Fundamental analysis determines the health and performance of a company. So it is important for you to look at key numbers (data release and fiscal health) analysis/]economic indicators[/url].
 
#4
When it comes to fundamental analysis of stocks, you should begin with the nature of company, the product or service it offers, the existing market or opportunities for the growth of the company, its current financials, and the overall market sentiment associated with the company.

Fundamental Analysis (FA) is a comprehensive study of a business. When an investor wants to invest in a business for the long term (3-5 years), it is important to understand the business from various perspectives. Fundamental analysis examines economic, financial, qualitative and quantitative factors associated with a stock. It also studies the economic data, performance of its peers, company’s financial statements etc.

Interpreting financial statements
Interpreting financial statements is critical to understand the financial health of a company. The three major financial statements are the Profit & Loss Account (P&L), Balance Sheet and Cash Flow statement.

P&L Account
P&L account reflects the operating performance of the company in a given year. The operating performance shows the company’s income, expense, and hence its profitability can be derived from this statement. P&L accounts are mandatory for every company and are released every quarter.

Here is an article that will give you better insights on the same https://www.5paisa.com/5pschool/equitymarkets/module_4
 
#8
I have herd that some simple strategies like following the average and so on are listed on that forum as well as earnforex.com, forexpeacearmy course and a lot of others basically like myfxbook.com , you really should know about them for sure! I see it here.
 

stoch

Active Member
#9
What fundamental analysis techniques are suggested for a newbie in the stock market?
Get a book on investment analysis where different indicators of company health are described. Calculating and comparing them with average you see on the market can provide you some opportunities to trade.

Cheers.
 
#10
If you want to conduct a fundamental analysis you may begin with analysing the revenues, profits, current position of the companies, growth potentials , competition and debt obligations of a company.
Calculate the growth rate of revenues and dividends over the years to know the financial position of a company. Also take a look on the debt equity ratio of a particular company to determine the amount of leverage used by a company. Companies using too much of debt may not be a good investment option.
 

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