Being rich is better than not being rich, now that you're rich,what's next
Rich fundamental 030512
Transcript of Rich fundamental 030512
RICH Fundamental analysis and order placement
Fundamental analysis Analysis of the underlying asset Analysis of annual report Annual report consists of: Income statement Balance sheet Cash flow statement And some other crap
Income statement Details the revenue
Every type of cost
Total revenue
Coca Cola income statement
Balance sheet Asset
Liabilities
Equity
Coca Cola balance sheet
Cash flow statement Cash is king
Hard to fake
Cash expenditures
Cash receipts
Ratios Price to earnings ratio
Price to book value ratio
Now that you have learned technical and fundamental analysis Are you going to make money if you don’t know how to buy or sell a stock?
How to put your order into the market
Order types Market order
Limit order
Stop order
Stop limit order
Stop market order
Market order Buy at the best offer
Sell at the best bid
Instant fill
Should be used more for exit than entry
Limit order Buy price has to be below current price
Sell price has to be above current price
My price or better
E.g. Limit buy @ $20.00 means your order can be filled at $20.00 or below
E.g. Limit sell @ $50.00 means your order can be filled at $50.00 or higher
Stop order Buy price has to be above current price
Sell price has to be below current price
My price or worse
Two types of stop orders:
Stop market,
Stop limit
Stop market order Gurantees that your stop order is filled
Buy stop market order at $20.00, once price hits $20.00, the system executes a buy market order
Vice versa for sell stop market order
Stop limit order Explain on whiteboard.
Order conditions Pending order- the order is sitting in the exchange
Filled order- the order has already been filled
Cancelled order- need me to explain or not?
Order duration Day order- cancelled at the close of the regular session
Good till cancelled order- stays in the market until you cancels it or 60 days or 90 days is up, depending on what platform you are using.