Learning fundamental analysis
I've been paper trading for about a year now, and if there's one thing I've learned its that there are a whole lot of cruddy resources out there. I have focused most of my learning on technical analysis, and very little of what I read actually helped my trading.
So now I'd like to learn fundamental analysis. Are there any resources that helped you guys learn fundamental analysis? Is there anything I should really focus on learning? I just want to start on the right track.
Be prepared to waste another year to find that fundamentals will not help much either. Everything you can know about their fundamentals and a whole bunch you don't know is already known by teams of people with a lot more money than all of us combined. The current price will tell you what the value is at that moment in efficiently traded markets. If you want to find inefficiencies you will be better off looking for price and/or volatility extremes. Learn to reduce cost basis, learn to get good entry and exit, learn to play price action.
Not saying fundamentals or technicals have no place....but if you are going to use them as an engagement tool you should still learn the other stuff.
Thanks, that's what I needed to know. I'll definitely look into reducing cost basis.
When I said I focused on trading technical analysis, I meant trading price action. I didn't realize that they were considered different things.
So would it be worth learning how certain news events impact the value of a stock? The news obviously moves the price a decent amount, but could any trader find out about an event before the opportunity to make profit on the move has passed?
Start with the concept of value investing, it is the basics for fundamental analysis. Google Buffet Investment Rules for stocks, he will tell you what matters the most in company's fundamentals. Global macroeconomic fundamental analysis is more complicated, and a lot of people would tell you don't try to predict rate hike or economy trends, because its pointless. Although, I don;t agree with this and have seen it working if you are doing short term trades.