"Did you know that fundamental analysis could be so easy and effective?"
Mascot PNG 2048×1536
Goldie
The superior profit trader

Use Fundamental Strength to Make Buy Sell Decisions

A stock represents a public enterprise. And fundamental analysis shows the strength or weakness of the enterprise through the company’s vital data. Fundamental analysts rely on a stock’s performance, ratios, etc. to decide whether to buy or hold or sell.

A fundamental trading system helps in identifying which stocks are healthy; these are the buy candidates. And which are weak, the sell candidates.

To be practical, a fundamental trading system and technique need to have the following characteristics.

Fundamental Analysis
Be Clear or Be Vague

Avoid fundamental analysis that says a lot without telling anything

For a stock, there is no scarcity of fundamental data. Much of it is available in the public domain for free. And some analysis may be obtained for a free. Is that plethora of information useful? Not necessarily. There is too much of fundamental data available for any retail trader to make sense of that.

Some traders fall into the trap of analyzing every available fundamental data. Creating fundamental analysis report on a stock that spans across 10, 20 to even 50 pages. These reports tend to say a lot. They are covering many angles of fundamental analysis. However, in the end, the story coveys little if anything.

One part of the analysis may appear bullish and another part bearish. The net effect is to confuse the trader. Or, worse, to let one’s internal bias take over. The analysis only confirms what the trader had in mind before he even started the fundamental analysis.

For trading successfully, you need a complete, unambiguous, and easy to use set of parameters and rules to decide which stock is fundamentally strong and which one is weak. And you should be able to apply the technique consistently to all the stocks. CUE system allows you to carry out fundamental analysis and make trading decisions yourself on any stock using consistent and easy to use scorecard and heat-map.

Don’t spend so much time analyzing that you miss the trade opportunity

An analyst who works for a corporation has only one job. His job is to analyze stocks. Make a lot of analysis, draft comprehensive reports full with charts and graphs and trends and whatnot. Preparing such a statement may take days if not weeks. By the time the study is ready, a trade opportunity is probably gone. That is why a fundamental analyst who focuses on producing lengthy reports may not be a timely stock trader. After all, a typical swing trade is held for about 5 to 7 trading days. A study that takes that extended time is practically useless, at least for swing trading purposes.

You don’t have to spend weeks or even days finding a fundamentally strong stock. You can identify it efficiently if you know the essential and sufficient parameters. CUE system allows you to do that.

clock-watch-timer-4000x3000
networking

Remember that fundamental without peer analysis is of little use if any

In isolation, fundamental parameters mean little, if anything. For example, a dividend yield of 7% may be thought as high only until you find many peer stocks in the same industry paying between 10% to 15% dividend yield. A stock’s earnings growth of 25% may be appealing until you discover that many peer stocks in the same industry are having earnings growth of 100, 200, or even 500%. Cases like these are not imaginary. Far from that. They are commonplace. To find a truly fundamentally strong stock, you have to compare the fundamental parameters with its peer stocks.

CUE systems let you carry out comprehensive fundamental plus peer analysis quickly without taking weeks or even days. You can complete this analysis in minutes using visual scores and heat-map.

You can carry out the stock peer analysis for a peer relationship that you want to use. It can be in the same industry, stocks in similar industries, stocks in the same sector, or even global peers. In a few keystrokes, you can find the fundamentally most robust stocks in the peer group of your interest.

And you can carry this out for global stocks, that is, stocks in any country of the world.

Make sure you can carry out a complete top-down analysis, even in real-time

When trading or investing based on fundamentals, it is not only the stock that matters. It is equally important to identify the dominant sector and industry. You may find the fastest moving sector and then drill down into the best-performing industry and then further drill down the most robust stocks using fundamental and peer analysis.

The market is competitive. You can be ahead of others if you can do this top-down analysis in real-time. CUE systems allow you to do exactly that.

a992e719-f509-41e5-b7cc-463cb05b4e5e
100 Percent Arrows in Targets Perfect Score

Take only the highest probability trades based on data-driven analysis

To find highest probability trades, align forces from multiple dimensions; sector, industry, stock; supporting your trade.

​Aligning edges in support of your trades from all the levels of sector, industry, and fundamental and then looking for optimal low-risk buy point is probably the most reliable way to take the highest probability trades.

​You can align the forces with ease using CUE systems that allow you to carry out the top-down analysis in real-time, keeping you ahead in the game.

Close Menu
Christian Wilkins Jersey