How deep should I go into FA to take advantage of it? Looking at it in the context of forex trading but anyway. How hard is to succeed in it without financial education? Know it’s quite abstract question but any thoughts would be very appreciated. P.S. Could you recommend some sources that can give right way of thinking?
Fundamentals move markets as they are the prime driver of the big banks, and only the big banks can move price. But when they move price, you will see it in the charts. Fundamentals which don't lead to price moves are not worth knowing about.
if you really want to take advantage of Fundamental analysis, you have to understand the major movers of the market. USD, EUR, GBP, JPY and CHF are some of the major currencies you should watch. Use an economic calendar to stay close to major news that affects the currencies. Try to read this article and you'll understand https://www.forexchief.com/analytics/economic-articles/affects-forex-rates/
I used to be a junkie for fundamental data. All the financial ratios, Income Statement, Balance Sheet, Cash Flow, you name it and I collect. Those with decent FA, the market has priced in. Just can't beat the institutional folks they have vast resources than us retail folks. I pay attention to institutional ownership. Folks like Vanguard, BlackRock, Fidelity etc have trillions in the market, granted that the Form 13F has a 45 days lag. Any big movement in institutional ownership deserved attention. Insiders buying is another one. I also pay attention to analyst rating. Any call they make can move price. Especially, those stocks that analyst positive ratings, all it takes is one or two downgrades.
You mean like this? https://www.marketwatch.com/story/apple-stock-falls-after-rosenblatt-downgrades-to-sell-2019-07-08
Fundamental analysis is the method to review the market during your trading session. It includes focusing on the overall conditions in the economy and the other elements closely linked to your trade. Areas including political, social and other such events are important for fundamental analysis. Why perform fundamental analysis? If fundamental analysis is conducted in a right manner, then it can really prove fruitful in the future. You will not face any shocking situations in your trading routine, if you have undertaken a proper fundamental research beforehand. So, familiarize yourself with all the daily happenings that can, in any way, affect your trading in an instrument. Make sure you stay up-to-date with the news and current affairs too.
A fundamental analysis helps the investors to understand what all factors can affect the value of securities say economic trends, industry and company performance by studying economic and financial data. A fundamental analysis assists investors in gaining an insight of “WHY” a stock is behaving a particular way and how the stocks will perform in near future. It explains that if a company’s performance is going good, the chances of increase in value of its stocks are high. So investors conduct a fundamental analysis and use this as a criteria to figure out whether they would like to invest in stocks of a certain company or not. A fundamental analysis helps you to : 1. Identify company’s performance and so the value of its stocks. 2. Helps to determine company’s fair value. 3. Helps to reduce emotional decision making as it based on facts. 4. Predict future price movements. 5. Assesses company’s ability to defeat competitors.