Rich fundamental 030512
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This document provides an overview of fundamental analysis techniques and different types of stock orders. It discusses analyzing annual reports, including income statements, balance sheets, and cash flow statements. It also covers common ratios like P/E and P/B. The document outlines different order types like market, limit, stop, and stop-limit orders. It describes characteristics of each type, such as instant fills for market orders and price conditions for limit and stop orders.
Rich fundamental 030512
- 1. RICH Fundamental analysis and order placement
- 2. 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
- 3. Income statement Details the revenue Every type of cost Total revenue
- 4. Coca Cola income statement
- 5. Balance sheet Asset Liabilities Equity
- 6. Coca Cola balance sheet
- 7. Cash flow statement Cash is king Hard to fake Cash expenditures Cash receipts
- 8. Ratios Price to earnings ratio Price to book value ratio
- 9. Now that you have learned technical and fundamental analysis Are you going to make money if you dont know how to buy or sell a stock? How to put your order into the market
- 10. Order types Market order Limit order Stop order Stop limit order Stop market order
- 11. Market order Buy at the best offer Sell at the best bid Instant fill Should be used more for exit than entry
- 12. 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
- 13. 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
- 14. 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
- 15. Stop limit order Explain on whiteboard.
- 16. 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?
- 17. 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.