There are a lot of ways to know the movement of the market, however, I found this article very helpful in analyzing it. It is important for a trader to know the how does fundamental analysis works in order to see what will be his or her next move.

Here are the economic indicators you must observe:

Earnings – investors are always checking how much a company is earning before investing in it.

Return on Equity (ROE)

Profit Margins - this measure how much the company keeps in profit out of every dollar of their revenues.

Price to earnings ratio (P/E)

Price to book (P/B)

If you understand the fundamental analysis it is more likely you have the chance to know what will happen with the stock price of the company you've invested.

To read the full article, you can read this Understanding the Fundamental Analysis.

Here are the economic indicators you must observe:

Earnings – investors are always checking how much a company is earning before investing in it.

Return on Equity (ROE)

Profit Margins - this measure how much the company keeps in profit out of every dollar of their revenues.

Price to earnings ratio (P/E)

Price to book (P/B)

If you understand the fundamental analysis it is more likely you have the chance to know what will happen with the stock price of the company you've invested.

To read the full article, you can read this Understanding the Fundamental Analysis.

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