Fundamental Analysis – How To Trade Options & Stocks W/ FUNDAMENTALS – Trading Like Warren Buffett

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When it comes to trading a lot of people don’t know how to use fundamental analysis when analyzing companies and finding plays. This puts you at a huge disadvantage if you are trading options or stocks. People always ask me how I find stocks to trade and how I find my plays and a lot of the time the answer is fundamentals. People get really confused as they are used to using technical analysis and day trading, and think fundamentals are out of date considering how over priced the market is. I explain how you can use fundamental analysis in this day and age and how it gives you an edge, especially when it comes to trading options. If you are just learning how to trade options, I recommend you first start out with how to trade stocks, as options are derivatives and get their value from stocks. You cant trade options without knowing how to trade stocks. The best way to learn how to trade stocks is by understanding how fundamental analysis works! Even if you are day trading or swing trading, fundamentals gives you an advantage because, like I always say, if you set yourself up for the long term you will run into short term opportunities. If you set yourself up for short term an only find plays with short term potential, its very unlikely you will have long term opportunities and will lose money on your trade if you are wrong.

This is a pretty quick explanation on fundamental analysis and there is a lot more to it like PE ratios, balance sheets, and earnings per share. I haven’t even dived into the deeper aspects of finance and investing like understanding analysts, bonds, assets, liabilities, long term debt and bonds. I will make more videos on this topic so do not worry, however there is a lot to learn and it won’t come easy. That is why I highly suggest reading the book Intelligent Investor by Benjamin Graham in the meantime, as he was Warren Buffett’s mentor! Also give me more direct questions and what you understand and don’t understand so I can clarify in the next video moving forward!

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Comments

Wreckhead says:

Off topic but what do you think of The Dollar Vigilante?

Ellis Painter says:

Great video! Keep it coming, loving the accounting terminology

ToM Rts says:

great video

ToM Rts says:

how to identify how specific event affect on currency ?

Mando says:

Hey Josh would you say that calculating operating profit margin would be the most accurate method to figure out if the stock would be a good buy?

Victor Warner says:

Please please please make more videos on fundamental analysis. It's very useful to learn the how to use fundamental analysis for things like quarterly earnings and also good to hear different perspectives.

Thank You!!!

Max Leaman says:

If you are a day trader, looking at the chart action is way more healthier then trying to play off fundamentals. The market will tell you what the stock is worth for the moment which is sometimes more important then trying to figure out where it will be in 3 months, a lot can happen within those months which would effect your analysis.

Ameer Hamza says:

can u talk about how to drive targeted traffic to your affiliate links. thanks

Gecko says:

How can you tell when he housing market is good or bad? What do you look for? What books would you recommend for those wanting to get into real estate?

zac m says:

What is your opinion on the Canadian housing market? Is it in a bubble? Would you short it? If so what companies would you look to short? (hypothetically)

John Trujillo says:

Can you make a video explaining how to read a 10k, like which pages are more important, and how to see how where the company does it spending and who do they sell their products to. For example if a shipping company is doing well, can you tell which company are they doing the delivery and shipping for? That's my main concern but I would also like the framework on how to read the 10k. PLEASE AND THANK YOU

Tyler Cobb says:

I have two questions.
1. Do you mostly day trade or swing trade or in between?
2. How many hours a day do you spend studying charts and looking at fundamental analysis?

Mac McCain says:

can you talk about trading based on probabilities and why you dont support selling premium as much as buying? Thank you.

FFHD says:

Thanks for another great video! Wanted to know when you will be announcing the winners for the giveaway.

hysto cyntoma says:

beautiful topic

Walter Mercado says:

Yes im first. btw what time is the webby on sun?

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