Education

Fundamentals for Traders

Tutorial

Everyone would probably agree that the

“fundamentals” – or at least traders’ perception of them – are

ultimately the driving force underlying market prices. Much of

today’s market analysis is based on prices, but it is the

fundamentals that produce the prices. The challenge for traders is

how to best learn about and study fundamentals in markets.

Unfortunately, despite their significance, there is no quick and

easy way to study market fundamentals, and you can’t find resources

that focus only on fundamentals that impact all markets.

The most obvious fundamental factors are supply

and demand for a particular market, especially the physical

commodities. But lots of macro fundamental factors effect

supply/demand and impact commodity and financial futures prices:

weather, world politics, consumer tastes and consumer attitudes,

disruptions in distribution channels, inflation, interest rates,

currency values, natural disasters and much more.