Fundamental trading is the practice of making buy and sell decisions based on a security's intrinsic value, not short-term price patterns.

Fundamental trading is the practice of making buy and sell decisions based on a security's intrinsic value, not short-term price patterns. By studying financial statements, industry dynamics, and macroeconomic forces, traders aim to identify mispriced assets and capture long-term gains. Core inputs include revenue growth, margins, balance-sheet strength, cash flow, and management quality, as well as valuation ratios like P/E, P/B, EV/EBITDA, dividend yield, and free cash flow yield. Unlike purely technical approaches, fundamental trading seeks to understand what a business is worth and why the market may be wrong today. Practitioners monitor catalysts such as earnings reports, guidance revisions, product launches, and regulatory changes, while managing risk with position sizing, diversification, and clear exit rules. Whether you focus on stocks, ETFs, or select digital assets with cash-flow proxies, a disciplined fundamental framework helps you build conviction and avoid noise. Learn how to value companies, compare peers, and time entries around fundamentals to trade with clarity and confidence.

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