Rich fundamental 030512
Transcript of Rich fundamental 030512
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RICH Fundamental analysis and order placement
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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
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Income statement Details the revenue
Every type of cost
Total revenue
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Coca Cola income statement
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Balance sheet Asset
Liabilities
Equity
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Coca Cola balance sheet
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Cash flow statement Cash is king
Hard to fake
Cash expenditures
Cash receipts
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Ratios Price to earnings ratio
Price to book value ratio
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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
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Order types Market order
Limit order
Stop order
Stop limit order
Stop market order
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Market order Buy at the best offer
Sell at the best bid
Instant fill
Should be used more for exit than entry
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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
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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
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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
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Stop limit order Explain on whiteboard.
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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?
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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.