All traders need to develop a strong understanding of how to interpret stock trends and measure the health of a business. Fundamental analysis helps traders capture the “big picture” of a particular company’s potential for profit and future growth; this type of stock analysis focuses on the long-term success of a company rather than making quick decisions based on short-term data. It requires traders to look at qualitative data and get a good understanding of a company’s health beyond its basic financial numbers. Fundamental analysis helps traders see the overall state of the economy and focus on factors like interest rates, employment rate, GDP, international trade, and manufacturing. As you develop your knowledge of the stock markets and what it takes to execute a successful trade, you’ll find that fundamental analysis skills will provide you with the essential knowledge to confidently make a successful trade.