What is Fundamental Analysi

Fundamental analysis is much more narrow than technical. A moving average works similarly in soybeans and IBM, on weekly, daily and intraday charts. MACD-Histogram flashes similar message in Treasury bonds and Intel. Should we forget about fundamentals and concentrate on technicals? Many traders take the path of least resistance, but this is a mistake.

Fundamental factors are very important to a long-term trader who wants to ride major trends for several months or years. If the fundamentals are bullish, we should favor the long side of the market and if bearish, the short side. Fundamentals analysis is less relevant to a short-term trader or a day-trader. Options strategies