If you have been trading for any amount of time, you know that there are different forms of analysis in the stock market.
In this short video below, we focus on FUNDAMENTAL analysis and how you can use it in order to chose what to trade.
In just one shopping mall, we debate which stock is best between Starbucks (SBX), Gamestop (GME), or TMUS (TMobile).
It's only one stock market, but you have sooooo many options on what to trade...
When you compare the 3 different companies in this shopping complex, you can see a difference fundamentally.
With Starbucks, they have a unique coffee and brand that you can only get from their store. They are also pretty famous and their stock is actually in the S&P 500.
So the fundamental research with this is very clear - it's a solid company.
Compare that with Gamestop, where they don't necessarily sell unique products. For example, oftentimes you can buy their games at Walmart or online.
Starbucks is more of an investment for longerterm, and Gamestop may be something newer investors are interested in for a short term trade.
And then you have T-Mobile which does present a unique trading opportunity, as the business seems to be doing well and its a well-known company.
The point is this: no matter what you trade, you have to do technical analysis as well as fundamental research.
Do you know the companies you are about to trade or invest in?
Sometimes its as easy as a Google search and listening to the earnings call to determine where the business is headed.
But this step has to be done in order to determine profitable stocks.
Join us every week where we research technical and fundamental potential trades inside of Power Trades University. Click here to find out more.
