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TD Ameritrade:

By placing a sell stop market order, you should understand that once the last trade price is equal to, or lower than your stop price, a market order will be activated. Such orders can help to ensure that you will exit your position, but do not establish a price at which your stock will be sold. With a stop market order, there is no guarantee that the execution price will be equal to or near the activation price. Execution at a price different than the activation price is more likely to occur in conditions such as a fast-moving market, at market open or market close, or when trading has been halted on a security.  once price reaches your level execute

By placing a sell stop limit order, you should understand that once the last trade price is equal to, or lower than your stop price, a limit order will be activated. Such orders establish a minimum price at which the security will be sold, but you run the risk of not exiting the position if the stock moves quickly below the limit price so you may not have the protection you sought. A stop limit order is often placed with the same price for the activation and limit, but does not need to be so, and should be set according to your personal preference.

Note: With stop orders, there is no guarantee that the execution price will be equal to or near the activation price. Once activated, they compete with other incoming market orders.

With a stop limit order, you risk missing the market altogether. In a fast-moving market, your order may not be executed at all.





up-trend: if 50 moving average is above 150 moving averagea dn above 200 moving average and its moving up. link for S&P500 SPX




TD ameritrade:

A stock can go upwards, downwards or sideways (it doesn't change overall)
Charts are not predictors of the future, but they can often be sources of insight and useful depictions of current conditions.

trading with the trend increases the probability of success.

An uptrending stock is more likely to keep uptrending, while a downtrending stock is likely to keep downtrending. Remember, technical analysts believe the price of the stock reflects the market’s collective knowledge.

add BollingerBands to chart by clicking on chemical icon in charts page Strategies and Studies page
Contractions are breaking points
The old resistence became hte new support
top part of boiler bands as new resistence
RSI d    
MomentumSMA Moving average

OBV: OnBalanceVolume
OBV goes up faster on larger volumes and lower on selling large volumes. It is an indicator that institutions are buying it. click up arrow when adding it to put it on price.














Here is a cheat sheet I made for analyzing stocks technically, fundamentally and financially. Enjoy
What to Look for Before Purchasing Stock Technicals

Support levels, micro(15,30,1hr,4hr) and macro(daily,weekly, monthly, yearly).

Resistance levels, micro and macro(same as above).

Trend(is it bullish, bearish or currently consolidating)?

• Make sure to look at micro and macro scales

Mental stoploss (should be near the bottom support level on the trend that you are looking at).

Candlesticks (what are they telling you?)

Volume(is there alot of liquid in the stock?)

Float(how many shares are available to trade of that stock?)

Short intrest(how many shares are soldshort, is a shortsqueeze possible, why/why not?)

Moving averages(where is the stock in relation to these averages?)

RSI (is it overbought or oversold?)

Patterns (do you notice any bullish or bearish patterns?)

Fundamentals – can be found at finviz.com 1.PricetoEarningsRatio(P/E)

• Use within same sector to compare companies, compare it to the average PE of the sector

• “What you pay for 1$ of company earnings”

• Want the PE BELOW sector average.

2. Price to Book Ratio(P/B)

• If the PB is less or equal to 1 (1>x), the stock is trading at/below the value of its assets.

• If the PB is greater than or equal to 1 (1<x), the stock is trading at/above the value of its assets.

• Use this to compare companies within the same sector

• Current share value ($) / (equity/share)

3. Price to Earnings to Growth(PEG)

• Good to use on a company with rapid growth

• If PEG is less than or equal to 1 (1>x), company is undervalued.

• If PEG is greater than or equal to 1 (1<x), the company might be overvalued.

4. Return of Equity (ROE)

• “how well a company generates earnings”

• 17-20% = very good

• 20-25% = excellent

• 25%+ = superior

5. Debt to Equity Ratio

• Try to avoid companies that have a ratio greater than 2.

6. Current Ratio

• “the ability to pay short term and long term debt”

• x>1 = liability > assets

• x<1 = liability < assets

• x>3 = holding back

7. SEC Filings

• File 4 = acquired/disposed of shares by insiders

• File 8/10K, looking for management optimistic/bullish

Financials


IncomeStatement (Revenues & Expenses,P&L)

• Revenue = driven by price and quantity of the product sold.

• Costs of goods sold = price of labor, materials, etc.

• General and Administrative Costs = price of sales people, utilities or rent).

• that takes you down to operating profit or EBIT

• from there you subtract out your interest expenses (amount of interest you pay for debt) and your taxes (companies have an effective tax rate) to get to your 'Net Income'

• Financial institutions like to look at a metric called EBITDA (Earnings before Interest, Taxes, Depreciation & Amortization) which is a semi proxy for free cash flow

• its essentially your operating earnings adding back Depreciation and Amortization which are non cash expenses

• Depreciation (think of buildings, you have a building worth $100 and you depreciate it over 5 years so goes down by $20 every year but its not a true expense so you add it back

• Amortization is for intangibles think like Intellectual Property

2. BalanceSheet(Financial position at a given point in time)

• Balance Sheet (financial position at point in time). Assets = Liabilities + Owner's Equity

• That's the very definition

• On the Assets side, you have Cash and equivalents (could be short-term treasuries that you can convert to cash pretty quickly usually within a year), Accounts Receivable (what a client owes you in credit), Inventory, PP&E (think like machinery for industrial companies). Liabilities is primarily A/P (what you owe ), Debt, both short and long term among others

• then Owner's equity is Common Stock, Retained Earnings (Net Income - Dividends paid to date) flows from Net Income on income statement

3. Cash Flow Statement(cash flow from operations, financing and operations)

• Cash Flow Statement, 3 main ones are Cash Flow from Operations (pretty straightforward what this means, day-to-day cash outflows/inflows)

• Cash Flow from Investing (CapEX is the big one here, represents purchase and sale of equipment, plant, properties, etc.) also outflows from acquisitions or inflows from sales show up here • Cash Flow from Financing is how the company raises money, you issue stock, you issue debt, and you get money

• companies can also repurchase their stock to lower number of shares outstanding, shows confidence in the stock


I was just trying to help out some people and the wave of emails that I sent out to you all was over-whelming, but I am happy to do it! If a mod wants to DM me so I can personally verify with him/her that I am NOT a scammer, would be appreciated. Just altruistic and believe knowledge is power.












Corporate Income Statement
Asset = Income - Liability

Revenue (total sales)
- Cost of goods sold
Ads
= Gross profit
- (Selling ) General and administrative expenses (G & A === SG&A)
Marketing
Sales (comission, cost of taking people out to dinners)
Salaries
= Operating profit (return)
ROA (return on asset) = return / total assets
- debt interest
= pre-tax income
- tax 
= net income (earning) goes to pocket of owners ====
Equity
Return on equity  = netincome/ equity



I'm 18 years old and want to learn how to invest my money. How do I get started?
 Averaging over a lot of stocks gives the same expected return for much lower risk. link
no fund owner is markedly better than any other, so don't accept anything more than the lowest available fee.
 put some small amount of your money like 10% in very safe assets that won't crash, like government bonds.
These facts lead to a clear course of action: passive investment (no buying or selling) in a market ETF (a fund which diversifies as much as possible) with minimal fees.

Mutual funds vs Stocks
Mutual funds are a collection of stocks bundled into a group. There might be 100 stocks in a mutual fund, for example.

Parameters
  • market cap (how much is the company worth[shares * price]),
  • annual/quarterly reports: (SEC 10-Ks and 10-Qs)
  • balance/income sheets
  • Start with online financial sites to get a quick idea of the business and key financial ratios.
  • Analyst reports
  • Check: Customers + Competitors + Suppliers

find stocks that are undervalued and buy them and to find stocks that are overvalued and sell them.
Stock prices go up/down based on how well people think the company is doing.
You are basically making a bet about how well you think a company is going to perform in the future.

Warren Buffett, one of the best investors today, said that if you cannot hold a stock for 10 years, you should not even consider holding it for 10 seconds.

The key to successful investing is to stick with your strategy over long period of time. So once you set your target, and the stock hits the target price, you buy, and continue buying as the stock goes lower.

Buy
"Online discount brokers" charge less than $10 commission per trade, regardless the size of the trade. The best brokers also offer no fee dividend reinvestment, good customer service, and various research tools for customers.

Notify the broker:
company's "symbol" (a 1-5-letter code),
the price you're willing to pay per share,
the number of shares to buy,
and the length of time for which your offer will be valid (e.g. Single day vs. Good till Cancelled).

"Full service broker" similar to a discount broker as discussed above, except that they charge considerably higher fees, and offer investment advice and more research tools. Because full service brokers are paid mostly by commissions, it is in their best interest to encourage you to trade as frequently as possible, even though it may not be in your best interest.



Dow 30: dow up by 5 points. the weighted stock of 30 companies
smp 500 index


Study for at least a year before investment, always diversify your money

do things that make you happy. then go to stock market, play with it like slot machine , if you win you win if you lose you lose. If you like to eat apple pie eat apple pie. if you don't do it and win a million dollars you are not happy. do what makes you happy then think about other stuff. http://www.youtube.com/watch?v=jlNYziQeE_U

Do not buy options, do not be a day trader, do not buy or sell puts or calls. do not buy partnerships

I like high dividend, high volume stocks with positive earnings. I like stocks which are in a business I understand. Do lots of research before you buy.


Therefore, institutions are methodical in the way they accumulate shares. They commonly buy a little at a time for a few days, knowing their actions will drive the stock price higher. Then they wait for the stock to pullback. After the stock has pulled back, they buy more shares at this lower and more desirable price, causing the price to rise again. They stop buying, allow the stock to pull back, and then start the buying cycle again.

A downtrend reflects excessive supply. Just like building a position takes time for institutions, unloading a position takes time too. Therefore, institutions will sell some shares, which pushes the stock price lower. Traders call this a selloff. Then institutions allow the stock to rise in order to sell at a higher price. This creates the lower highs and lower lows of a downtrend. However, it is said that “Stocks take the stairs going up and the window going down.” In other words, stocks tend to drop faster than they rise. Below is a chart of Proctor & Gamble (PG). It took over two years for the stock price to climb from $66 to about $94 and about nine months to give it all back.



To create a trendline at support, draw a line connecting as many lows as possible.
To create a trendline at resistance, connect as many highs as possible.






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