How to Invest in Futures Based on Fundamental Analysis?

Before shelling out a great part of your retirement savings to buy stocks, it is very important that you know exactly what type of investment are stocks investments. Futures offer good ROI in share market. Futures stock investment is actually buying a small unit of ownership of commodity through stock broker. It is different from regular stocks you buy as it does not include certain benefits like voting rights and then receiving profits every time the company distributes profits to its shareholders. The amount of profit share you are to receive is dependent on the amount of stocks you have bought from such company. In case of futures, it depends on the future trading options and pre-defined exit positions as per planned strategy.

Basics of Stock Market

One of the best features of stock ownership is the fact that you as a stockholder of the company are entirely free from any liability however if the company loses a lawsuit and pay a huge amount then you must prepare for the worst since such happenings often lead rendering your stocks worthless.

The good news is you can still prevent such unsightly scenario from happening in commodity futures; all you have to do is to employ the expertise of a stock research provider or a stock broker, whichever you prefer the main objective of your hiring them still remains the same and that is to provide you with effective financial advice on how to lessen the risk of your stock investments and to increase your chances of gaining.

Stock broking and Fundamental Analysis

Before implementing any financial strategies, it is important to conduct fundamental analysis. This analysis is accomplished by a stock research provider. The fundamental analysis involves the process of examining the basic of the fundamental financial level of the company or the business which you are eyeing in buying some futures. The analysis should also include examination of key ratios of a business in order to determine its future financial health thus providing you with the idea of the value of its stocks.

Most investors make use of fundamental or technical analysis or a combination with other tools like margin calculator in order to evaluate futures and options stocks before finally investing. The objective of evaluating futures investment is to determine the current worth and predicted value of the stocks.

By making use of key financial tools for fundamental analysis you will gain in-depth evaluation on commodity stock investment that will guide you in making wise and smart investment decisions. Likewise, understanding the key ratios and terms will also help you in lessening the risks involved in your stock investment.

Probably the most important information any investor would like to know is how much profit they are going to obtain from their commodity futures based on their past performance. This is really not surprising since it is just logical that when you invest in online buying stocks; you of course would like to derive earnings from it.


In commodity investment your concern is more on the ability of your chosen company to generate money today and in the future. Earnings are the profits and although it is sometimes hard to calculate but that’s what buying stocks is all about. An increase in earnings or profits basically leads to a higher stock price and usually results to a regular dividend. A well-defined plan is required for better ROI.

During times when earnings fall short, the market may hammer the stock. Companies report their earnings quarterly. Some analysts that monitor major companies notify their stockholders if ever they notice a significant decrease or fall on the companies’ projected earnings. Although it is true those earnings play an important role in stock investment but they don’t tell anything about how the market values the stock. If you want to determine just how the market values the stock you might need to use some fundamental analysis tools—this is because fundamental analysis tools focus on earnings, growth and value in the market. Here, you can download share trading app.

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