My First Investing/Trading Books

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When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

Understanding Fundamental Analysis

Nanonood ba kayo ng Shark Tank? Kung kayo ay nanonood, napansin ninyo na palaging tanong ng mga sharks ay numbers. Kung magkano ang sales nila. Ano ang plano etc. Ang fundamental analysis ay ganun din.

Fundamental analysis ay ang pag-aaral tungkol sa value ng isang company at kung may potential ito for future growth. Paano nalalaman? Sa kanilang financial statements or FS. Kaya pansinin ninyo pag pumunta kayo sa website ng isang listed company, my investors section doon kung saan pwede ninyong idownload yung FS nila at mga news or other disclosures na pwedeng maapektuhan ang mga investors. Makikita nyo rin sa pse edge, lahat ng fs and other disclosures ng mga listed companies.

Ang fundamental analysis ay pwedeng quantitave;  meaning ito yung mga kinocompute like eps, debt to equity, book value etc at pwede din itong qualitative meaning ito ay yung bigger picture like company's management, quality and popularity of products or services etc. Para hindi kayo mahirapan sa quantitative aspect, search kayo ng mga apps or websites na magcocompute ito para sa inyo. Marami naman dyan like Investagrams or Bloomberg. For the qualitative aspect naman, be aware na lang sa mga news not only about the company but also those news na makaka-apekto sa industry.

Ako ang ginagawa ko, kapag hindi ako familiar sa isang stock, una kong binabasa yung company overview. Iniintindi ko kung ano yung business nito. Pag may idea na ako, titignan ko na ang FS. Tinitignan ko kung kumikita ba yung company o hindi. Since nauuna ang balance sheet, tinitignan ko yung retained earnings. Kapag negative yan, usually pass na agad ako pero minsan depende. Usually kasi kapag negative ang retained earnings ng isang company, hindi yan nagdedeclare ng dividends. Kaya kapag ganun, sa price appreciation ka kikita. So ang gagawin ko, titignan ko yung income statement kung declining ang loss meaning yung loss nya for the year ay mas mababa compared last year. Kapag declining, kinoconsider ko sya na pwedeng pasukin pero titignan ko muna yung industry nya at mga competitors nya kung may competitive edge ba yung company in the future.

Hindi madali ang pag-pasok sa stock market. Walang yumayaman overnight dyan. So bago pasukin, check the fundamentals of the company bago ito bilhin. Wag tayong papadala sa mga hype or yung mga nilalaro na mga stocks. Kung kaya mong makipagsabayan at willing to take losses, then ok lang to buy some basura stocks.

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