Stock Market Investing For Beginners 2021 | How To Analyze Stock Value
With everything going on in the world, stock market investing has become the forefront of a lot of people's minds. Investing in stocks come with risk, and it's important, especially for beginner investors, to know how to analyze stocks and know their value. Instagram: kikoga
LIMITED TIME: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1600):
https://act.webull.com/kol-us/share.h...
Software Used In Construction:
AutoCad https://amzn.to/3qGt1lz
Autodesk Revit https://amzn.to/3qEl6Fe
Microsoft Office https://amzn.to/3pFMPnQ
Youtube Camera and Recording Equipment:
Camera https://amzn.to/2ZOrGxn
Shotgun Mic https://amzn.to/2ZAL2FT
Clip On Mic https://amzn.to/3qM3pUw
Ring Light https://amzn.to/3pAA6m9
Drone https://amzn.to/2ZyJkET
*Some of the links and other products that appear on this video are from companies which Kienen Koga will earn an affiliate commission or referral bonus. Kienen Koga is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
The world of Gamestop and wallstreetbets, though somewhat hilarious, really shows how dangerous a speculative market can be. To drive the price up for a company that really has no true value left is a dangerous thought for most people who don't fully understand what they are doing. For the average person, and playing the odds of the market, you won't be financially successful in the long run with a speculative strategy. You have to treat stocks for what they truly are: companies.
So when it comes to your mentality investing in stocks, I would suggest that you get the day trader mindset out of your head. If you're constantly watching your stocks go up and down and getting emotionally invested in the volatility; you aren't investing. Again, you're trying to improve your odds of success; you don't improve your odds by trying to trade stocks day to day. The advantage we have as regular investors is the long term approach. Day traders need to constantly show some kind of profit which affects their decision making; whereas we can take advantage of the long term approach; weather the ups and downs, and reap the benefits of long term growth which will usually be greater in the end.
There's a lot of free information out there that give you little hints to better position yourself for a good decision when picking a stock. Here's my steps:
Conceptual Analysis:
You want to make sure that you understand the company's business model and how it differentiates itself from its competitors. This way you can see they path to actually creating profit and being the best in their industry. You can also see if the product or service that the company provides is something that will be used for a long time; chewing gum, sometimes looking at addictive products are quite interesting too; things that people will always use to make their lives easier.
Fundamental Analysis
Now we get to look at the numbers. You look at things like market cap, or the company value determined by the market price and outstanding shares and relate that to what you believe the value of the company is. You can read 10Ks and 10Qs to see what the company's finances and outlook are on a quarterly and annual basis. Things like the PE Ratio, Price to Book Ratio, and PEG Ratio all tell you if the company is undervalued or not and is best used when compared to the company's competitors. Return on Equity and Return on Invested Capital tell you how well the company uses its assets and invested capital to generate profits for the company; and in turn its investors. And the current ratio and looking at long term debt and cash flow can tell you how risky the current financial state is for the company and how long it would take to pay off liabilities. It's these steps that you really should be taking and possibly more to make sure that your investment is made based upon facts, not feel.
DISCLAIMERS & DISCLOSURES
This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
0:00 Intro and the Gamestop Conumdrum
1:40 Stock Basics
2:50 Stock Investing Mentality
4:58 Stock Conceptual Analysis
6:07 Market Cap and Reports
7:26 Indicators of Undervalued Stocks
9:48 How Well A Company Generates Profit
10:58 Company Financial Risk
Song: MBB - Hawaii
Music provided by Vlog No Copyright Music.
Creative Commons - Attribution-ShareAlike 3.0 Unported
Video Link: • MBB - Hawaii (Vlog No Copyright Music)
