Articles related to fundamental analysis – the corestone of trading decisionmaking – are published in this section. Collecting, analyzing and applying fundamental information about stocks and currencies.
When I first started investing, I talked to a lot of stockbrokers. The majority of them relied solely on fundamental analysis' as their decision support tool, quoting from company financial reports and earnings research for their investment advice. They fluffed off technical charts as hocus-pocus. Their standard chant: „I've never met a rich technical analyst.“
Tugging on the other end of the rope were the card-carrying'members of the technical analysts' club. „Who has time,“ they insisted, „to comb through pages of sleep-inducing reports? A chart tells you all you need to know.“
In this age of information, we no longer have to spend hours wading through pages of a company's mind-numbing financial reports to find out if it's worth our time and money. Instead, we're going to look at a quick way to check a stock's fundamental health. The kind folks at Investor's Business Daily (IBD) have devised a ranking system for stocks that I find invaluable. Under the guidance and ownership of the renowned William O'Neil, they provide proprietary ratings that give you a quick and reliable snapshot of corporate numbers. (Please understand, I am not connected with IBD.)