RICH Fundamental analysis and order placement

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

Income statement Details the revenue

Every type of cost

Total revenue

Coca Cola income statement

Balance sheet Asset

Liabilities

Equity

Coca Cola balance sheet

Cash flow statement Cash is king

Hard to fake

Cash expenditures

Cash receipts

Ratios Price to earnings ratio

Price to book value ratio

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

Order types Market order

Limit order

Stop order

Stop limit order

Stop market order

Market order Buy at the best offer

Sell at the best bid

Instant fill

Should be used more for exit than entry

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

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

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

Stop limit order Explain on whiteboard.

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?

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.