THE True Definition giving an investor the unfair Investor Advantage. . .
Hidden from most investors but now revealed on this site.
Definitions of Fundamental Analysis from very reliable sites like Investopedia.com assume or define that this term refers to the study of a company's financial statements and "other" industry, economic, and company factors with little mention of anything else.
I don't believe Investopedia is deliberately attempting to be misleading, but the Extraordinary Definition of Fundamental Analysis encompasses more than the common definition implies.
For too long, investors are being destroyed for lack of knowledge! No wonder investors are being led astray from the power of true Fundamental Trading.
The Extraordinary Investor's Definition of Fundamental Analysis is the study of the actual facts of all that encompasses the company and its history within its sector and within the broader market, and then compare these assets with current news releases, so as to determine the value and perceived value of the company's stock now and in the future.
This analysis includes data on its products, and development of products, intellectual property, patents, management, finances, competition, and much more within the economic and political conditions at the time.
To be more specific the Fundamental Analysis Definition includes the following factors:
Industry, market, economy, currency, media, political policy, investor and public support, alliances, perceptions and needs, competition, trends in perceived values, marketeer involvement, managerial experience and decisions including the ability to be creative and adaptable in tough situations, product developments, patents, reverse stock splits and forward stock splits, financial health, financial truthfulness and accountability, company history, availability of data, etc.
The above topics represent some major categories of important fundamentals that influence a company's future growth or decline directly or indirectly always in advance of major technical signals for a company's stock.
Penny Stocks are not like other stocks - they require different strategies to capture trends and profits
Such fundamental data, as just listed, is essential, vital, necessary to measure the value of penny stocks.
Why so? . . .
Unlike other stocks, penny stock companies rarely make a profit and normally go into huge debt funding development or exploration of products. Since this is the case, technical trend data of trading based on profits, sales, and growth will not work. The value of penny stocks must be measured by other means. . .
The fundamentals I listed are the areas of study that measures a penny stock company's real and perceived value. Such data, therefore, is vital in determining the value of a penny stock, and its potential to eventually be promoted by media, capture trader interest, and thus the potential to explode in value in the near future.
All of this data is a far cry from just looking at a company's financial statements and similar information!
Your Journey to Becoming an Extraordinary Investor
As you continue on your journey this site takes you, you will learn and comprehend and be able to utilize the full definition of Fundamental Analysis. This knowledge will instill in you the Unfair Investor Advantage over most other traders as a penny stock investor.
Because, unlike other stocks, most traders do not study and follow the highly speculative penny stocks until media promotes them.
Once promoting begins by many media channels, including email newsletters, many traders rush all at one time to buy shares of the now "discovered" penny stock causing share prices to rocket upwards in a short time.
As you can see, technical signals forewarning of the rocket trend are non-existent in most cases until it happens - too late to plan for trades in stocks about to turn into rocket stocks.
Then, after media completes its promotions, and the pump is complete, penny stock prices will again plummet or cycle down far sooner than most traders think.
Penny stocks are, therefore, a different animal requiring different methods of study to capture their wealth.
By searching for, targeting and studying the fundamental assets of high potential sleeper penny stocks, you are setting yourself up for success in capturing their profits long before other traders become aware, or re-acquainted, with them.
You are investing in these stocks at sleeper prices before media begins their promotions and long before the hoard of pigs arrive to trade. That is the Investor Advantage at work.
Marketeer involvement in itself is a major influence in penny stock trading. Such involvement can effectively create a powerful influence on perceptions of investors for a particular stock and/or segment of stocks - causing investors to see and act in a way that marketeers desire for the marketeers' benefit.
The Competition is a huge factor as well. Many penny stock traders neglect to study the products and product developments of the competition and compare this data with the stock they are targeting for investment. You don't want to be stuck holding shares of a stock with products in development that have no real advantage over the competition.
Don't overlook the other topics mentioned. All are extremely essential in discerning the explosive potential of your target sleeper penny stock. This essential knowledge is all on this site.
The human mind, given all the facts, and knowing what to look for coupled with experience, can realistically analyze future success of your target stock long before technical signals develop and before marketeer involvement.
Why is this the case? Mainly because most investors are skittish about penny stocks until their activities reach reliable media sources and/or under marketeer/media promotions.
Therefore, most investors do not study stocks that do not gain their attention first through media sources. This gives the extraordinary investor the edge over most other penny stock investors.
Fundamental Analysis vs Media/Marketeer involvement
The purpose of fundamental research is to locate high potential exploration and developmental penny stocks before Media and Marketeers begin investing and then promoting them.
Fundamental Data precedes marketeer involvement - your window of opportunity! It's up to you to study the fundamentals before the marketeers do, and invest in those high potential stocks that marketeers seek to invest in. . . Before they begin their promotion campaign.
This development of the "Mind of Understanding" through fundamental and technical knowledge and experience is creating the "talent" or the "Sixth Sense" of Extraordinary Investing.
The Mysterious Sixth Sense of Successful Penny Stock Investing
The "Sixth Sense" is an Investor Advantage talent that gives the Extraordinary Investor an unfair advantage over all other investors. The Sixth Sense is created as an investor talent in the mind of understanding through:
• ongoing persistence in doing solid fundamental research with basic technical research as confirmation of companies behind stocks
• experience researching and investing in stocks using solid fundamental analysis as the dominant research tool and guide
This knowledge feeds the mind of understanding all it requires to create accurate investment strategies.
The experience gained through such research gives the Extraordinary Investor uncanny insight into the inner workings of a company within its sector, within its financial market, and within the broader market. This insight becomes seasoned by continual use (experience) when researching companies to invest in.
Such seasoned insight develops a foreknowledge of the potential success of companies and their explosive potentials as rocket stocks far enough in advance of technical signals to plan and implement trades, or before other investors have a clue.
This novel methodology is the foundation on which the investment strategies taught on this site gain their power.
Such study is what feeds the mind all the essential information it requires to fully understand the future investment potential of a company underlying a stock.
This is the method by which any average person may develop the unique talent of becoming an Extraordinary Investor and reap huge rewards consistently and with minimal risk.
This is the Investor Advantage.
Specializing: A little fundamental analyses will destroy you, but a complete and ongoing fundamental analyses of the market, a sector of stocks, and a company of focus, with the aid of technical data as applicable, will accurately locate for you those stocks poised to explode or plunge in value.
Specializing in this way is how millionaires are made.
Extraordinary Investing - Easier than ever:
The computer, the internet, and the Information Age makes complete fundamental analysis a breeze and low cost.
Before the computer and the internet, such study was long and tedious. This is the age for fundamental traders; yet, only about 3% are reaping the rewards. Only 3% understand how to use fundamental analysis to capture explosive trends of penny stocks.
Fundamental analysis appears so complex and time consuming
Fundamental study of companies scares most investors away from seriously studying fundamentals for successful investing. That is why those few who actually do the fundamental study succeed.
In actuality, once you know how to conduct a complete fundamental study of a company, it really is a far easier, faster, safer and more effective method of accumulating the most wealth from investing than any other method of investing.
The Extraordinary Investor uses complete fundamental analysis and know what to look for and how to use the data. Such investor is predictably first to trade an explosive trend in developmental companies often reaping 25% to well over 100% on a single trend/trade. This site shows you how to do this.
Doubling Your Investment Yearly is Conservative when done properly
Highly successful fundamental penny stock traders are the Extraordinary Investors. The mission and purpose of these special fundamental traders is to predict an explosive move in share prices of a particular stock with uncommon accuracy.
Fundamental vs Technical Analysis
Such investing requires proper fundamental research and enough technical data to identify historical lows and highs in share prices and trading volume of that stock to determine if a stock is investment material and if it is presently trading at bargain prices and see whether the stock is in sleeper status - out of the limelight.
For instance, technical data may show that a stock is trading at near all time lows for several months or longer. To know if this type of stock is investment material, you have to know why the stock is trading so low.
Technical Data is helpful in pointing out patterns an extraordinary investor is looking for. After that, such investor then looks at fundamentals to supply the "why" and the possible potential - good or bad - of the technical information.
Not all investment trades are winners
The complete study of a company's fundamentals coupled with basic technical data, act as a double confirmation of fundamentals.
Over 75% of all trades should be successful in the worst of economic conditions as experienced by myself and other extraordinary investors by researching in this way - and that is being ultra conservative!
If you use this system of trading and experience less than 75% successful trades, then re-study the material and/or consider if you are really serious about investing and following this system to reap profits from the market.
The other 25% or less of the trades that do not pan out - the unsuccessful trades - rarely should lose serious investment money; rather, the trades just do not explode as much as anticipated because of changing fundamentals after investing or because of a misjudgment of the fundamental news on a stock's value.
Study and Follow the Strategies on this site and You Will Succeed!
If you are using the investment strategies taught on this site and you find that many of your unsuccessful trades are major losers, than you are not following the system of strategies for one reason or another as this site teaches it; rather, you are risk taking and not doing your homework.
Knowledge coupled with Experience is Essential for consistent success.
With time and experience an extraordinary investor's ability to use fundamentals to accurately judge or gauge a company's potential to explode in value increases dramatically. This investor talent is called the "Mysterious Sixth Sense of Successful Penny Stock Investing."
Technical Trading is the current fad of the investment world. As a result, Complete Fundamental Analysis and Fundamental Trading is thrown to the curb with dire consequences for many when trading penny stocks.
Technical Trading vs Fundamental Trading
When considering trading stocks, technical trading is essential for day trading and swing trading strategies, and can bring fair to good results with medium to large cap stocks.
With penny stocks though, an investor must have a solid working knowledge of fundamental data of companies underlying the stocks.
Because unlike other stocks:
• Over half of all penny stocks are duds or scams. Your job must be to screen, target penny stocks with high potential to explode soon. You have to know what type of stock you are targeting to invest for technical data to be of value.
• Most investors don't have knowledge of high potential penny stocks until media and marketeers get a hold of them and start promoting - too late for technical traders without high risks.
• Penny stocks are too thinly traded. Couple that with marketeer pump and dump schemes and media promotions and you have penny stocks plunging or rocketing in prices without prior technical signals to warn you, or in spite of technical data pointing to just the opposite.
True Fundamental Analysis is Hidden from the general public - but revealed on this site
Unfortunately, investing successfully with a proven system of fundamental analysis is rarely taught by media anymore. In addition, media demotes fundamental trading and penny stocks as risky and inferior in comparison to big time stocks and technical data.
What this all means is that most investors will never understand how to successfully trade penny stocks and reap tremendous earnings from rocket stocks in comparison to other forms of investing. That is why the Extraordinary Investor has the Investor Advantage over most penny stock traders.
Is it any wonder that penny stocks are described by media as very risky investments?
Obviously penny stock trading is risky if you don't understand the inner workings of penny stocks. To do that, a stock trader must rely on good fundamental analysis to trade by.
Since media downplays fundamental analysis, penny stock remain a mystery to most stock traders, thus highly risky investments for the general public. Technical trading strategies will not work with such stocks as they do with most others.
Good Fundamental trading as described on this site is a well kept secret because technical trading is in the spotlight.
No one wants to read about some trading method that they perceive to be inferior, so it's rarely mentioned or completely revealed by most forms of media. When it is mentioned, incomplete, false and misleading information is proliferated that obscures the benefits.
The power of fundamental trading with penny stocks is hidden from the public by mass media intentionally and through ignorance.
Fundamentals are downplayed and un-popularized while technical trading is marketed by mass media as far superior - the new high tech fad of trading securities.
Technical Trading made King - but not because it works so well
Technical trading has become king, the fad of investing. You go to most penny stock sites, and what you see is charts and technical data sprinkled with a hint of fundamental helps.
Technical trading works well for the huge mutual funds and investment firms that day trade on the financial markets with highly sophisticated intelligent algorithmic trading programs that are beyond what 98% of independent day traders can keep up with. That is where technical trading ends its reign in reality.
Extraordinary Trading is the Secret King of the Penny Stock Market
Fundamental Analysis and Penny Stock Trading have become taboo to speak of in a good and truthful light in media and by many securities specialists. Therefore, good fundamental trading of Penny Stocks is a well kept secret except to the small percentage of millionaire investors who live and invest by it.
General Public Hypnotized by Media
Only a small percentage of independent thinkers are able to escape the hypnotic trance created by mass media. These persons have learned to use complete fundamental analysis to reap rewards from the stock market.
Extraordinary Investors are those who reap rewards from penny stocks by the use of a proven system of complete fundamental analysis coupled with simple technical data to help aid and confirm the value of shares, trends, and optimal buy and sell entry points.
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Fundamental Analysis - The Definition
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Fundamental Trading Secrets