Fundamental analysis as we all know by now, is the best method of checking out the financial condition of a company. This is easily accomplished by using financial reports, price/earning ratios, incomes, market share, sales and growth, etc.that are available This type of analysis can be very time consuming but I find it well worthwhile the effort that I put into it.

Here are a few factors that I take into consideration when researching a potential stock.

1 Earnings Per Share (EPS) .This shows me the stock’s average short term (recent quarters) and long term (last three years) earnings growth rate actually is.

2 Relative Price Strength (RPS) This measures a stock’s relative price change in the last 12 months in comparison to other equities Iin the Stock market.

3. Sales + Profit Margins + ROE (Return on Equity). This shows you a company's sales growth rate during the last 3 quarters, before and after profit margins and the return on equity.

One of things that comes with experience is a trading edge. If you are unable to develop a good trading edge over the other traders, you could end up losing all of your capital, even if you are very disciplined and organised.

In this article I will cover some pertinent factors that I quite often use in achieving my own personal trading edge.