FUNDAMENTAL ANALYSIS

Fundamental analysis is one of the tools that investors use to manage their portfolios. It helps an investor in making informed investment decisions by evaluating the intrinsic value(anticipated/calculated value) of an asset and analyzing the external factors such as global and national economy, industry trends, etc. as well as internal factors such as financial statements, management, etc.   Fundamental analysis helps an individual  to gather the right information to make rational decisions about what position to take. By basing these decisions on financial data, there is limited room for personal biases. Rather than establishing entry and exit points, fundamental analysis seeks to understand the value of an asset, so that traders can evaluate  longer-term investment decisions.