What You Actually Need Before Starting
Most people jump straight into charts and technical indicators. That's backwards. Trading success starts with understanding what moves markets—and that's not just lines on a screen.
Fundamental analysis gives you context. It shows you why a stock might be climbing or why an entire sector is struggling. Without this foundation, you're just guessing. And guessing with real money gets expensive fast.
We're not talking about becoming an economist. This is about building a framework that helps you make better decisions when it matters.
Building Your Knowledge Base
You can't analyze what you don't understand. That sounds obvious, but people try it every day. They read an earnings report and have no idea what matters. They hear about interest rate changes and don't know how it affects their positions.
Start with financial statements. Balance sheets, income statements, cash flow—these aren't just corporate paperwork. They tell you if a company is actually making money or just good at marketing.
Economic indicators come next. GDP growth, unemployment rates, inflation numbers. These shape the environment your trades live in. When the economy shifts, opportunities shift with it.
Industry dynamics matter too. A great company in a dying industry still faces headwinds. A mediocre company in a booming sector might outperform expectations. Context changes everything.
Perspectives That Shape Understanding
Different backgrounds bring different insights. Here's how three professionals approached fundamental analysis before they became consistently profitable.
Dae-jung Kwan
Spent years in corporate finance before trading. He reads balance sheets like others read news headlines—quickly spotting what's real versus what's creative accounting.
Håkon Berntsen
Background in macroeconomics gave him an edge reading central bank signals. He watches policy changes before they become obvious to everyone else.
Siobhan Devereaux
Started as a journalist covering technology sectors. She learned to separate genuine innovation from hype—a skill that translates directly to spotting sustainable growth.
Getting Your Mind Right
Patience Isn't Optional
Fundamental analysis takes time. You're digging through quarterly reports, comparing industry peers, tracking economic trends. If you want instant gratification, this approach will frustrate you. But if you want to understand what you're actually investing in, there's no shortcut.
Questions Over Answers
The best analysts ask better questions. Why did revenue grow but profit margins shrink? What's driving this sector rotation? How does rising inflation affect this company's pricing power? Curiosity matters more than memorizing formulas.
Comfort With Uncertainty
You'll never have all the information. Markets move on incomplete data and human psychology. Fundamental analysis helps you make informed decisions, not perfect ones. Learning to act despite uncertainty is part of the process.
Willingness to Be Wrong
Your analysis will sometimes miss important factors. The market will prove you wrong. That's normal. What matters is how you respond—adjusting your framework, cutting losses when needed, and learning from what you missed.