Fundamental traders are typically very methodical, with a good knowledge of particular asset and factors that may affect the pricing of that asset.
For example fundamental analyst would look earning report in company, trading updates and evaluate major themes that may influence how company will perform in future (interest rates, retail sales,…).
The fundamental traders seek to analyze the true value of asset, highlighting potential trading opportunities when the underlying price in the market for that asset indicates if the price are overvalued or undervalued.
Main features of fundamental traders:
- look for overvalued or undervalued prices
- analyses the true value of an asset
- attentive to economic data (company earnings and research)