In summary, fundamental analysis studies the core underlying elements that influence the

economy of a particular entity, like a stock or currency it attempts to predict price action and
trends by analysing economic indicators. Fundamental analysis can be explained as a method of
estimating a security which involves attempting to evaluate its basic value by assessing allied
financial, economic, and other quantitative and qualitative factor. Fundamental analysis aims at
studying everything which affects the value of the security, including macro-economic factors
such as the overall economy and industry conditions, and company specific factors including
financial condition and management. This analysis method is taken as the opposite of technical
analysis. As explained by Investopedia, fundamental analysis to evaluate stocks, this technique
can be used for almost any type of security. Therefore, the objective of fundamental analysis is
to generate a value that an investor can weigh against the current price of the security, with the
goal of outlining the type of position to take with that security (under priced= buy, overpriced=
short or sell). In term of stocks, fundamental analysis emphasizes on the financial statement of
the company being assessed. Fundamental analysis can be illustrated as the example
mentioned ahead. Let us assume that an investor can execute fundamental analysis on the
value of a bond by looking at economic factors including interest rate and overall state of the
economy, as well as information about the bond issuer, like potential changes in credit ratings.
For evaluating stocks, this method involves the use of revenues, future growth, earnings, return
in equity, profit margins and other data determining the underlying value and possibility for
future growth.

Next, goals of fundamental analysis is a stock valuation methods that uses financial and
economic analysis to predict the movement of stock prices among them are predicting future
price movement, determining fair value, management evaluation, analysing companies financial
strength and determining company’s ability to beat competitors. As well as factors of
fundamental analysis is to make financial forecast, it also make internal business decisions, to
make projection on its business performance. It also used to conduct a company stock
evaluation and predict the price evaluation. Next, three most important financial statements
are income statements, balance sheet and cash flow statements. Financial analysis relevance
for long term investors, financial advisors, value investors, fund managers. Fundamental
analysis typically refers to a method of analysing and evaluating equities, thought it may also
apply to other types of securities. Income statements, balance sheets, cash flow and other
publicly available documents are used to analysed the financial health of a company. Economic
data such as unemployment numbers and interest rates such as unemployment numbers and
interest rates may also to be considered. The goal of to find companies that are trading at a
discount from their true value and thus may increase in share price when the market recognises
their quality. For the national economy, fundamental analysis might focus on economic data to
assed the present and future growth of the economy. Fundamentalist do not need the advice of
the random walkers and believe that markets are weak-form efficient. By believing that prices
do not accurately reflect all available information, fundamental analyse look to capitalize on
perceived price discrepancies. So the key concepts in fundamental analysis for forex traders is
the economy good or bad because if the economy is good, the higher currency value and if the
economy is bad will lower currency value.
 Lastly, 8 steps to research a company to invest in, first and foremost looking for a company
that has a 10k business division covering segments, operations and industry. The second step is
to find a company that has management discussion analysis. MDA will explain about the
business overview, industry / industry trends, segment performance and overall performance of
the company. The third step is to find a company that has financial statement analysis because
this financial statements comes with footnotes and the footnotes can be the key to
understanding the financial often a company does something unique with a particular line item
and in the footnotes they explain what and why they are doing . step four is to get company
presentation earnings calls to get to know the firm understanding what they do, how the make
money where their margins what their growth rate like, do they have cash flow, how does cash
flow look what is management 's plan and more. so step 5 is competitors analysis. in this step
we need to identify competitors. what we are going to do is we want to read a little bit about
each of the competitors and try to what their plans is, what their growth rate, what is their
margins like, what their business line are they trying to go into. Step 6 is determine fair value is
to identify what our company does, what their competitors do, where they fall overall in the
industry. step 7 is see what the stock is doing now and if we can identify what was happening
either with that company or with the industry to identify what moves the stocks. last step, step
8 is to wait for buying opportunity, this step is to determine what our personal margin of safety.