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  • Welcome to Sigma Algo
    • How to Use This Guide
  • Getting Started
    • Getting Started
    • Account Management
    • Community and Support
    • FAQs
  • Trading 101: Fundamentals
    • Understanding the Markets
    • Basic Trading Concepts
    • Technical Analysis
    • Fundamental Analysis
    • Risk Management
    • Trading Psychology
    • Building a Trading Plan
    • Forex 101
    • Futures 101
    • Crypto 101
  • What Are Prop Firms?
    • Business Model of Prop Firms
    • Differences Between Futures Prop Firms and Forex Prop Firms
    • Examples of Prop Firms
    • Pros and Cons of Trading with Prop Firms
    • How to Choose a Prop Firm
    • Conclusion
  • Futures Prop Firms List
    • MyFundedFutures.com
    • Topstep
    • Apex Trader Funding
    • TickTickTrader
    • Take Profit Trader
    • Belunox
    • Overview of Firms
      • Comparison Table
      • Account Options and Pricing
      • Pros and Cons
      • Detailed Comparison
      • Conclusion
  • Algorithmic Trading with Sigma Algo
    • The Sigma Algo Edge
    • Getting Started with Sigma Algo's Algorithmic Trading
    • Sigma Algo Toolkits
      • MM Sigma Algo
      • Sigma Sessions Breakout v2
      • Sigma Renko Band Indicator
      • Sigma Renko MACD Indicator
      • Sigma Renko MACD Overlay Indicator
      • Sigma Renko Suite
      • Sigma Renko Suite Bot Version
      • SIGMA Heikin Ashi Dragon V2
      • Don V3
      • Sigma Sensei Ichimoku
      • Sigma Sniper
    • How to Use Sigma Algo Tools
  • Sigma Base Hits Strategy
    • Sigma Base Hits Strategy Simplified
    • Examples with Contract Details
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  1. Trading 101: Fundamentals

Fundamental Analysis

Understanding Fundamental Analysis

Fundamental analysis evaluates the intrinsic value of an asset by examining related economic and financial factors.

Economic Indicators

  • Interest Rates: Central bank policies influence borrowing costs and currency values.

  • Inflation Rates: High inflation can erode purchasing power and affect asset prices.

  • Employment Data: Employment levels can signal economic strength or weakness.

  • Gross Domestic Product (GDP): Measures a country's overall economic output.

Company Financials (for Stocks)

  • Earnings Per Share (EPS): Company's profit divided by the number of outstanding shares.

  • Price-to-Earnings Ratio (P/E): Current share price relative to its per-share earnings.

  • Dividend Yield: Dividend per share divided by the share price, indicating the return on investment from dividends.

  • Financial Statements: Analyze income statements, balance sheets, and cash flow statements for a comprehensive view.

News and Events

  • Economic Calendars: Track scheduled releases of economic data that can impact markets.

  • Geopolitical Events: Political instability, elections, and international relations can influence market volatility.

  • Corporate Announcements: Earnings reports, mergers, and management changes affect stock prices.

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Last updated 5 months ago