… we want when we buy or sell.
I hate it when that happens!
No one likes to buy a stock only to see it fall in value. Reports of analysts and politicians expressing doubts about the market or an industry can trigger selling. I look at the evidence, not just opinions. When not convinced the …
… growing the business and paying no dividends.
The numbers, ratios between them and changes gives us insight into the operations of a business. Many accountants, MBAs and analysts keep very busy analyzing business numbers. Reports they write are based on a deep study of the numbers. Those reports give you much useful information.
Apples, oranges …
… of a one-hour call. In large companies, only analysts typically ask questions. These analysts are professionals working for brokerage houses with strong knowledge of the company and industry. They ask sharp, on-point questions that bring valuable insights.
The Value of Analyst Questions
When there are issues, analysts dive into the details, seeking clarification
… carry less and less weight
when you can’t see it you can’t count it. That means we can no longer depend on any volume based analysis to give reliable and useful information about market activity. There has been much hand wringing by pundits over the declining reported volumes, but it is not hard …
… professional field, personal interests, or sectors you’re well-read about.
Conduct Thorough Research:
Before investing, study each potential company or industry. Analyze financial statements, read annual reports, review analyst opinions, and understand critical competitors. Aim to comprehend fully how the business makes money and its prospects.
Ask the Right Questions:
If you’re considering …
… investors. But most important, we must understand how to deal with HFT.
To be clear and fair, this is not a blanket condemnation of HFT. Informed observers, reporters and analysts see computerized trading as useful. And as part of the market. Lesson 9 includes some useful, justifiable and legitimate HFT strategies. Those strategies do not …