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12. Jun
2012
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A bottom-up stock trading strategy focuses directly on the securities fundamentals. This approach is opposite to the "top-down" approach and is a "micro to macro" for of analysis.
An analysis at the company level will take into consideration such factors as the companies products, market share, earning momentum and forecasts, balance sheet, cash flow, control of debtors and the list can go on to include all factors which influence the securities price at the security level. This strategy is the most popular fundamental method employed by analysts.
It does however require a large commitment of time and effort to produce a detailed financial analysis of each security. To make this job easier on the analyst fundamental research is divided into two main categories, growth and value securities.
