Fundamental trading also known as fundamental analysis or value investing, is an investment approach that involves analyzing the fundamental factors of a company or asset to determine its intrinsic value. This method focuses on the financial health, performance, and prospects of a company or asset, rather than solely relying on technical indicators or market sentiment.

Key aspects of fundamental trading include:
Financial Statements Analysis:
Fundamental traders analyze a company's financial statements, including its income statement, balance sheet, and cash flow statement, to assess its profitability, financial stability, and cash flow generation.

Business Model Evaluation: They evaluate the company's business model, industry dynamics, competitive positioning, and growth prospects to understand its potential for generating future earnings and value.
Economic and Market Analysis:
Fundamental traders also consider macroeconomic factors, such as interest rates, inflation, economic growth, and geopolitical events, as well as industry-specific trends and market conditions that may impact the company's performance.
Long-Term Perspective:
Fundamental traders typically take a long-term investment horizon, aiming to identify undervalued assets with strong fundamentals and holding them until their intrinsic value is reflected in the market price.