This Fundamental Factor Can Boost Your Trading Game

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We’ve been spending time on fundamental analysis, which is really the absolute best way to get a handle on a company’s medium- and long-term prospects. Is it worth your money? That’s a question this kind of analysis can help you answer.

Last week, we looked at free cash flow. In tonight’s video, we’re going to look at another critical factor: operating margin. Knowing this can help you determine how “safe” and healthy a business’ operations - and profitability - are.

But of course, we’re traders, right? Well, with a good grasp of fundamentals we can pivot to good ol’ technical analysis to size up the quality of the trade setups on our charts.

Tonight, we’re going to do that with some consumer staple and utility stocks I’ve got in mind.

Video Length: 00:10:20


More By This Author:

There’s A Big Divergence In The Market’s Mojo
Stocks Are Catching Their Breath Now - And You Should, Too
Traders Bet On Volatility As The S&P 500 Falters

Disclaimer: This article is republished from The Conversation under a Creative Commons license.

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