Secret of Fundamental Analysis

What is Fundamental Analysis of any Stock/Data???

It is like the background check of a security for short term trade. Investors usually use fundamental analysis for long term investment but not for trading. We can see how security has performed over the years and then we can select the stock to invest or trade.

Fundamental analysis is to study the financial statements of a company and other incomplete definitions. In other words an assessment of a company's value and potential using complete fundamental analysis.

Secret of Fundamental Analysis

Fundamental study of developmental and exploration companies will identify or locate penny stocks for you to watch that are genuine with experienced management, exciting novel products in development, patents, financing in place for at least 6 months, or the ability to obtain such financing, and a number of other fundamentals that this site will cover repeatedly.

Penny stocks generally have no sales and profit statistics on which you can bet, so the only way to discover a potential trend in penny stocks before it happens is by study of the fundamental assets the penny stock has.Fundamental analysis can, therefore, show you which of those target stocks have high potential for explosive upward trends or warn of impending downward trends long before genuine technical signals form. Thus you have time to plan your trades.

Best ways to limit risks when investing in penny stocks:

If the recent share price of a well researched high quality and high potential stock is at an all time historical low, then the likely hood that the share price will break below, or much below, that lowest share price is highly unlikely. This is true if the historic low occurred during the last recession. 

If the stock does not have enough history trading, then the historic low has not been tested by a negative economy. In this case, the true historic low most likely has not been reached yet.

Buying up shares of a confirmed high quality sleeper penny stock at this lowest share price will put you in the best position to minimize risk, take advantage of the risks of other traders, and ride the wave of an explosive trend once media and marketeer involvement take place.