SCM

Sunday, March 10, 2019

What to know before you go into Stock market?

Well,I know nothing but the 4th seminar in investment/trading does teach me something about
what stock you should go for?
So to evaluate, you look into profit and growth of the market
To know profit, u can look into the ROI,ROE and ROA
ROI means the return of investment, ROA as return of asset and ROE -return of equity mean how good the company in borrowing the money and lastly your operating margin
EPS- earning per share

so how about growth? u look into 2 things, EPS, sales and valuation

so let's start with the live demo
-open your finviz webpage

  so first it is important to understand that average colume indicate the liquidity, means the higher the number, the more the amount of people are doing selling and buying


then we look into the fundamental analysis to understand the sales and EPS itself, normally we target the current EPS  to be 10% and the past EPS to be just positive, same apply to the sales

after we filter all, to decide which stock to buy, we calculte the forecast price
using the formula of Earning times P/E ratio which means price over EPS
For ur unnderstanding pe ratio mean using rhe current stock price divide by the earning per share to show money u ready to pay fr how much the company worth



No comments:

Post a Comment