Futures and options analysis can be made by several different methods. Futures fundamental analysis relies on economics and statistics to analyze the variables (such as inflation and interest rates) as they affect the markets in two countries. Fundamental analysis has its supporters as does technical analysis--another method to predict trading outcomes.
Fundamental analysis options are found in various software programs or through investing firms. Energy trading fundamental analysis will differ slightly from forex trading fundamental analysis because variables are different. Fundamental analysis is like taking a "snapshot" of the commodity to predict monetary changes, which is a graph coordinating all the variables between markets. The graphical picture would predict the direction of change. Some analysts use fundamental analysis for one situation and technical analysis for another. People make money with both methods.
1. Fundamental analysis uses economic theories and statistics to create its predictions. Technical analysis uses historical evidence to create predictions for stocks movements.
2. Futures and options fundamental analysis is based on the economic concept of supply and demand, consumer behavior, price and quantity and production demands. Stocks-to-use ratio is a measurement of the supply and demand inter-relationships, or variables.
3. Variables are hard data that concerns your investment--exchange rates, strength or weakness of the dollar and costs of products.
Action Steps
The best contacts and resources to help you get it done
Learn how futures and options analysis is done
Fundamental analysis is difficult to understand, but its difficulty decreases as you learn about the underlying concepts. Anyone investing in commodities futures needs to know this theory. There are books on the subject but an online course is probably more helpful.
I recommend: Finotech is a trading service with courses on investing, including fundamental analysis. Novice investors can benefit from taking this course. The
New York Institute of Finance offers online courses in technical analysis and other investing topics.
TradingMarkets.com is another resource for learning more about fundamental analysis from the guide, Fundamental Analysis for Beginners.
Use an options analysis software program to do your calculations
Options analysis software programs have built-in systems for complicated calculations and are a great help for analyzing options.
I recommend: Morningstar offers software that has several types of analysis methods, including fundamental. There is a 14-day free trial to see if it works for your needs.
Quant IX Software produces the Better Investing Portfolio Manager. It is a software program based on computing ratios with variables that you input by hand or import through another software program. It has a support site and will send you updates to your version.
Get the relevant information needed to conduct futures and options analysis
There are many resources on the web about markets, interest rates, and all the data that goes into fundamental analysis. Financial ezines and newsletters are good sources of information, too. Nevertheless each country's security and exchange website should be visited frequently to stay informed of changed rulings, announcements, and laws that affect your investments.
I recommend: The
Australian Securities and Exchange website is a terrific guide for first-time investors from any country. You can apply their investing steps to your goals and even look at their resources, which can help you make better investment decisions. The
U.S. Securities and Exchange Commission's website should not be overlooked by any investor. Here you will find rulings, announcements and financial statistics that are variables to fundamental analysis.
Tips & Tactics
Helpful advice for making the most of this Guide
- Take an online course in futures and options analysis where you have the benefit of interacting by email with a teacher who can answer your questions or explain something you don't understand.
The official source of Futures and Options Fundamental Analysis is
the Futures and Options Fundamental Analysis page at Business.com
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