PICKING STOCKS IN THE MARKETThe analysis of securities
Made by: Imran Almaleh
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INTRODUCTION
About the course
WHY INVEST?
Why the stock market? The stock market & The economy HOW CAN WE USE IT?
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PART 1 agenda:
The 2 types of TRADERS The fundamental analysis The technical analysis The trading cycle The Market moves Trading psychology Basics of Analysis:
The Time-frame The 3 green lights Volume Support & Resistance Trend-lines 4
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THE TYPES OF TRADERS
The sleeping man Not a risk taker Stocks are not his primary concern
The active trader Always alerted Deep analyzer Risk taker
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THE SLEEPING MAN
BUY
SELL
80 SP
profit
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THE ACTIVE TRADER
BUY
SELL
BUY
SELL
110 spPROFIT
65 spPROFIT
175sp overall profit
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THE IMPORTANCE OF FUNDAMENTALS
Get to know YOUR company Filtering stocks using fundamentals
ROA ROE E/P – D/P ratios Market value : Book value
Review report
Why not to use it in DSE? Market efficiency Market depth 8
رمزالشركة AROP UIC NAMA AHT UG ARBS
المبيعات 779.00 840.00 88.00 535.00 941.00 1,366.00األرقام بالملايين
الدخل صافي 137.00 151.00 9.00 48.00 121.00 402.00الملكية حقوق 1,186.00 1,060.00 208.00 334.00 626.00 3,635.00
اجمالي الموجودات 2,734.00 2,443.00 344.00 397.00 1,333.00 41,177.00
التوزيعات النقدية 60.00 111.00 7.00 42.00 131.00 90.00
األسهم عدد 2,000,000.00 1,700,000.00 560,000.00 400,000.00 3,000,000.00 6,360,000.00في السهم سعر
السوق 1,025.00 1,029.00 822.00 1,261.00 372.00 1,041.00
الدفترية القيمةللسهم 593.00 623.53 371.43 835.00 208.67 571.54
SPS 389.50 494.12 157.14 1,337.50 313.67 214.78E/P 68.50 88.82 16.07 120.00 40.33 63.21D/P 30.00 65.29 12.50 105.00 43.67 14.15الربح هامش 17.59% 17.98% 10.23% 8.97% 12.86% 29.43%
ROA 5.01% 6.18% 2.62% 12.09% 9.08% 0.98%ROE 11.55% 14.25% 4.33% 14.37% 19.33% 11.06%
P/E ratio 14.96 11.58 51.15 10.51 9.22 16.47 9
TECHNICAL ANALYSIS
Supply & Demand The main concepts:
The Trend Bull market Side-way market Bear market
The trading cycle
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PRICE MOVES IN TRENDS!
THE TRADING CYCLE
Strong, Smart, and Dumb MONEY The marketing Model
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THE MARKET MOVES
All Actions have Reactions
3 types of movements:1. Main move
Uptrend Downtrend
2. Correction 33% of last move 66% of last move
3. Small moves14
THE PSYCHOLOGY OF TRADING
Selling the Win fast Holding the Lose
GREAD AND FEAR Fear is stronger than Greed
THE EMOTIONAL CYCLE OF THE MARKET
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THE EMOTIONS CYCLE
HOPE
GREED
FEER
PANIC
HOPE17
THE BASICS OF ANALYSIS
The time frame The 3 Green lights to start The importance of VOLUME The support & resistance Trend lines
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TIME FRAME
Short-term Trading (Daily Trading) Between 5 minutes – 1 day
Mid-term Trading Between 1 Week – 2 Months
Long-term Trading (Investment) Between 6 Months – 2 Years or more
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3 GREEN LIGHTS
The stock market index The industry index The stock index
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TRADING VOLUME
Why observe it? Selling pressure Divergence
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SUPPORT & RESISTANCE
Concept Drawing the lines Converting the Support to Resistance & v.v. The strength of a Line
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THE TREND LINE
Upward trend Downward trend Time frame & the trend lines How to draw a trend-line? Trend break-out
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