What We Teach

Fundamental trading is an investment approach that focuses on identifying investment opportunities with strong momentum drivers based on fundamental factors and combining that with technical analysis to find low risk, high reward opportunities. The approach takes a top-down approach, meaning that it starts with the macro view of the market and works its way down to individual ideas.

The first step in the fundamental trading approach is to get an understanding of where the market is and where it is heading. This involves analyzing factors such as the business cycle, credit cycle, and the goals of the central bank and government. For example, if the central bank is looking to expand the economy and raise the prices of assets, fundamental traders will look for opportunities to go long in the market. Conversely, if the central bank is looking to slow down the economy and lower prices, traders will look for opportunities to go short.

The next step is to analyze fiscal policy and the policies being put in place. This trickles down into finding opportunities in growing industries or investing in countries with high consumer or business demand. On the flip side, if the economy is contracting, traders will look for opportunities to go short.

Once a great investment theme is identified, where there are very strong fundamentals and momentum based on these fundamentals, traders will then use charting and technical analysis to find low-risk, high-reward entry points. The goal is to leverage charting and technical analysis to find a way to get in where risk can be controlled, and returns can be maximized.

Overall, the fundamental trading approach is focused on identifying strong investment opportunities based on a thorough understanding of the market, macroeconomic factors, and technical analysis. By combining these elements, traders can find low-risk, high-reward opportunities to generate returns in the market.