The Stock Market has greater security, profitability, liquidity, and flexibility than any other asset.
Therefore, investing in the Stock Market is interesting for all the public since it is very profitable in the long term; also, it gives more excellent stability through dividends.
Before investing in the stock market from scratch, we must know the benefits and risks of investing in the stock market. Let’s start with the advantages:
We know that the future in anyone’s economy is determined by:
We are incorrect when we think that the idea of getting rich is to earn a lot of money.
We get rich when we save; just by making money, you don’t get rich; As the saying goes, it is not the one who earns the most but needs the least.
Although we earn a lot if we devote it all, we do not get rich either. Therefore we must know how to save and invest those savings in creating more wealth.
The fundamental analysis is to determine the value of companies based on their results and assets held. How? With a series of metrics:
PER: Relates the market capitalization of a company with its net profit, that is, its earnings with its price per share. It tells us how many exercises are essential to generate profits to be equal to their market capitalization.
Price / Cash Flow: ratio used to compare a company’s market value with its cash flow. The lower the rate, the better its value.
Price / Book Value: measures the relationship between the price at which the shares trades and the value of their equity, that is, the book value of their assets less the book value of their debts. The price at which it lists is lower than its book value, and therefore we would be facing a buying opportunity.
The company is trading at a price that is approximate to its book value. The price at which its list is higher than its book value.
ROE: measures the return obtained by the shareholders of the company’s funds, its ability to reimburse its shareholders.
Net Dividend per Share: The amount of net profit achieved by a company divided or distributed among the number of shares.
Profitability per Dividend: It measures the fraction of the share price that goes to shareholders in the form of a dividend each year.
Net Profit (Millions): The profit remains in the company after covering all expenses and taxes.
Ebitda (Millions): is the gross working profit calculated before the deductibility of expenses.
EPS: is the part of the profit that corresponds to each share of a company. It indicates the profitability of the company.
In the stock market blog from scratch, you can know all the details. If you are especially interested in companies’ valuation, you can learn more about the Valuation of companies: PER, EBITDA, cash flow, sales, capitalization.
In the technical analysis, you have to look at the quotes’ charts, the evolution of their price, and do not consider its results or assets.
It always advises using 2 or 3 indicators so as not to lose focus of the analysis.
Our broker’s platforms usually provide these programs (in some cases, they can delay). It would be suitable if they were in real-time.
For this it would be convenient:
It is unnecessary to have considerable assets to invest in several companies, so it is advisable to diversify both companies, sectors to minimize risk.
You can temporarily invest in a company, that is, you decide the time you want, or it is convenient for you, for days, months, years, in a way that allows us to avoid the risk of a sharp decline.
We can have the liquidity of the investment when we need it. It is also essential to keep in mind that owning shares in a reliable company can obtain a loan.
We will find many web pages on the internet that provide us with free information on the quotation, dividends, fundamental and technical information of any company. Thanks to these transparencies, we can know the listing price of our shares.
Profitability depends on the growth of profits and dividends of the companies.
The profits obtained by the transfer of the shares and the dividend directly enter into our account.
The stock market time is:
Opening auction 8.30 am to 9 am (+30 “)
Open market 9 am to 3:30 pm.
Closing auction 3.30 to 3.35 (+30 “)
At the opening auction from 8.30 am to 9 am, orders can be entered, modified, and canceled, but the order book is not yet available without crossing trades.
The chance end of the auction (30″), within 30 seconds, ends without warning. It serves to avoid price manipulations.
The continuous constricting market is open from 9 a.m. (after 30″) until 3.30pm.
In the closing auction, the same thing happens. The 5-minute time slot is from 3:30 pm to 3:30 pm and will also end with a random end of the auction of 30″.
I leave you an article about the opening and closing auctions that may interest you to expand the topic.
International taxes on your print-on-demand business Starting your own print-on-demand business is an attractive scheme… Read More
Your data is an incredibly valuable asset. Data can be anything, from customer information for… Read More
Known as the sexiest job of the 21st century, Data science is a booming sector… Read More