1: fundamentals definition
2: how fundamentals work
3: Fundamentals vs Technical
4: example of fundamentals
Opening information:
Fundamentals means the central or basic matter of any activity, without knowing fundamentals it’s impossible to understand the whole thing of something.
The activities would be health, love, or finance. It must have some fundamentals to understand and improve it.
So this article contains information about what is fundamentals, how fundamentals work, and what is the difference between fundamentals and technical, and finally example of fundamentals.
1: fundamentals definition
One of the people Mr. James dreams was to become a big fisherman. So James went to catch lots of fish by taking his fishing rod.
His fishing rod is 5 feet long and he didn’t have any great skill in fishing. So James went to learn and spent two hours each day to learn the fishing skills from the great fisher.
The James fish teacher would teach him all the technical steps and tips about fishing, and which types of rods would be suitable for him.
How James would acquire and catch more fish as much as possible in a very short amount of time.
Moreover, his teacher would also teach about how tricky and suddenly take a rod once the fish bait the hook.
After learning, all the technical and advanced things in fishing, James feels very confident and comfortable catching lots more fish.
James spends 8 hours fishing after mastering the skill from his fishing teacher. But he wouldn’t catch a single fish for nearly 8 hours.
This makes James Wonder why the fish won’t bite his hook. This makes him feel worried and sad. Because no matter what rod fish hook or wire James used.
If James doesn’t put the right food for the fish based on the fish he wants to catch, then no matter how advanced or technical things he knows while catching a fish, it becomes useless.
Giving the food which makes the fish bait the food as quickly as possible helps James to catch the fish as much as possible.
Providing the right hook for the fish is the core and central thing for fishing, it’s fundamental. without the right food for fishing, all the advances and tricks became useless for the fisher.
So fundamentals are very important for everything, without fundamentals, people wouldn’t use advanced things in all matters. Next, let’s see how the fundamentals work.
2: how fundamentals work
In the stock market, the basic and essential thing is ownership of the shares. The ownership shares are called stock, and these stocks are called Securities.
So without any issued shares of the company, there are no other technical or advanced things in the stock market.
It means fundamentals are core things for all market participants in the stock market. Without them, there is no need for the entire stock.
Which doesn’t have any value to raise or pay from the Investors. This makes them more important than anything when compared to all other things.
When comes to the stock market people’s most likely to focus on the team’s technical and economic analysis. Which doesn’t make sense over time.
But when someone masters and knows the fundamentals, it doesn’t matter once he misses the technical or economical. They would understand the stock better than other Investors.
On the other side when somebody doesn’t know the basics of fundamentals, he loses the money on the stock market no matter what and how advanced it where.
So the fundamentals are the core integration of every activity because Warren Buffet made more than 100 billion dollars by focusing on fundamentals. Most people confuse the fundamentals and technical stuff, let’s make it completely clear.
3: Fundamentals vs Technical
The fundamentals and technical don’t have any big difference, the basic things of any activity would be called fundamentals.
The basic means it just has to have a core and central purpose for any particular item.
The technical is the advanced things of any activities that are called technical of any materials or matters.
Advanced means not including any fundamentals instead using the fundamentals in a more advanced way to trade the Securities is called technical things.
So the key difference between the fundamentals and technical is basic and advanced. To make more clear about fundamentals with the example.
4: example of fundamentals
Let’s say you’re a civil engineer, and you had a project to build an amazing building that occupied 120 floors.
Moreover, you had an amazing idea to step up every floor easily. Your project designs and worth are more attractive to everyone.
But you didn’t have any idea about the base basics of the building which is fundamentals. This makes the total plan useless.
Because without any strong basement, it’s impossible to build all the floors easily in the building project.
Non-Market rule: #100109
Fundamental defines the concept of basic, it’s very important without fundamental more advanced functions, and things aren’t possible at any cost. But they aren’t direct market rules without referring to any object.
If your investor and not comfortable or aligns investing with based on market rules please learn about how to regulate your investments under your control with the use of Rule investing.