Fundamental analysis provides the most accurate view of the market based on which we can take decision about trading. How do you analyze the market fundamentally? Can you share some idea?
I am not an arch fundamental analyzer but I calculate the potential impact of news hitting the market.
I am more on the macro fundamentals. Interest rates, Reserve Balances, Central Bank policies, Geo-Politics. I don't pay much attention to company earnings announcements and forward guidance and top line and bottom line numbers or growth projections.
Same here, macro fundamentals, especially shifts, cause large market participants to modify their investment strategies that cause large changes in asset prices. Their investable size commands that they spread their volume over multiple days/weeks to reduce market impact, which provides an edge for smaller players. Not some candlestick patterns or support/resistence of the past.
I consider political condition, inflation, interest rate, candlestick patterns tc before taking an entry.
Personally, I consider major incidents that are taking place in countries affecting the economy and impacts of news.
To do this, I and my friends normally check things like economic news, interest rates, and world events to understand how assets might perform in the future.
I always look at pe ratio and debt. Price to book ratio is worth checking too. Read "the intelligent investor" There are some stocks that are ridiculously overvalued. Fundamentally the reason you buy stock in a company is for a claim on its future earnings. If that claim is too expensive, you've moved from investing to gambling on herd behavior.
I trade forex and the US stock indices (long-side only) but I am purely technical - I pay no attention at all to fundamentals on either.
Start with the yield curve. Every asset is impacted by interest rates. Predict that and you can predict how everything else will respond. Once you master the curve, focus on supply and demand factors for the particular asset you want to trade. Is the company issuing stock or buying it back? Is there more or less acreage dedicated to producing the commodity? Etc. Then do a valuation analysis with comparable assets. Discount the cash flows. Compare the yield to the benchmark curve and similar investment options. With the above in hand you'll know which direction you should be trading (long or short). At that point you can apply technical analysis to identify low risk entry opportunities. Set targets. Etc.