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"The
Unrivaled Practical Guide for Stocks Market Investment.
Demystifies the secret of stocks investing"
1st stock investment.com
providing free and easy
step by step stocks investing lessons and stocks
investing guide with the most comprehensive investing
education such as fundamental analysis, technical
analysis, Stock valuation or value investing online
lessons.
What to buy? When to Buy? and When to Sell?
When
come to investing in stock market, all you need to do is
learn how to make a decision on what to buy, when to
buy and when to sell.
Success and good
luck comes to those already doing a right things !
Don't throw your hard earn money into stock market
before you have an investment plan in place such as how
to make an investment decision without emotion, what
investing methodology or strategy to use and risk
management plan. 1st-stock-investment.com will help you
get ready if you are still not there yet. Read on to this introduction to stock market, understanding
what is stock market and
why stock market exist. How stock market behaviors
and
what makes stock prices go up and down.
Investment
Psychology
Success will only
come when you know how to control your emotions.
The secret of successful stock
investing is depend on
how
you apply
Investing Psychology (emotion),
Methodology
or strategy and
Risk Management
in stock Market effectively.
If you are going to change your stock investing results, you
mush first change your way of thinking. Remember, your biggest
enemy, when investing or trading in stock market is yourself. You could be a brilliant
stock analyst
but a lousy investor or trader if you are letting your emotion to control
yourself. Keep in mind with this
winning psychology when you are in
stock market.
There is
only one rule, never break your rules;
Start with these generic
Golden trading rules and apply difference rules under difference
market cycles such as
Trading Rules in support level,
Trading Rules in consolidation and rebound phase,
Trading Rules in Market Up Trend and Resistant level,
Trading Rules in Market Down Trend.
Investment Methodology and Risk Management
Investing in stock market without a plan
and execute it with discipline is like playing on the
freeway-deadly. Do you
base your decision on charting, patterns, fundamentals, news, etc.?
Choose
an Investment Methodology or strategy that best fit your risk
tolerance level and personality such as Fundamental Analysis,
Technical Analysis or Value Investing to help you make
an investment decision.
Without
the implementation and strict adherence to
investing strategy and
risk
management principles such as
asset allocation,
diversify, cutting loss, and understanding difference type of
investment risk and what is
market risk premium, even the best stock investing
strategy will not succeed.
Risk management is critical elements of a successful investing and
trading...
Fundamental Analysis
Fundamental analysis
help investor to pick stock and build a
"buy and hold" portfolio.
Fundamental analysis is one of the most popular stock valuation
method used to evaluate the worth of a business by studying the
financial data of the company, it involves read and
interpret
financial statements such as
income statement,
balance sheet and
cash flows statement. It looking at the company revenue, expenses,
assets, liabilities, management and operation efficiency and all the
other financial aspects of a company by using
financial ratio as an
analysis tool. In other words, it focuses on the "basics" of the
business. Let's look at
how to extract data from consolidated income statement,
balance sheet,
cash flow statement and put into
traditional financial model develop by 1st stock investment
center and Learn
how to use traditional financial model step by step
here.
Value Investing
Value investing is
the allocation of capital to those companies that "create value" for
shareholders and whose value can be measured with a high degree of
integrity.
Value
investing focus on the
valuation of companies and
looking for long-term return on invested capital. This
method using discounted cash flow of expected dividends
or free cash flow to equity owners to estimate absolute
intrinsic economic value of individual company.
Price Investing (Pricing Model) refer to using fundamental analysis
which focusing on absolute accounting book value and price ratios.
Growth Investing normally refer to use
fundamental analysis to screen out companies with growth in earning
and forecasts earning growth rates instead of appraisal of value.
Interpret Financial
Statements
Financial statements tell investors how good the company
is at making money, what they owns and owes, and how
they're paying for their operation and future growth.
Learn
how to
read and interpret these three financial reports namely income
statement (also known as profit and loss statement),
balance sheet and
cash flow statement to build up your strong foundation for
advance financial ratios analysis and finally on stock fundamental
analysis.
Business cash flow diagram provide graphical representation on
cash flow between financial institutions, stock investors and bond
investors.
Integrity of financial statements reveals the relationship
between income statement, balance sheet and cash flow statement and
finally lead to "balance" of the balance sheet.
Financial Ratios Analysis
Read and
interpret financial statements tell investors a lot
about a company financial condition and business but
nothing about how it will perform in stock market and
helping on investment decision making.
Calculate
and compares
financial ratios of several companies
from the same industry provide valuable
information about a company performance
relative to it's competitors, investors use
this information to make a investment
decision as to which company is a better
investment choice.
Download the
financial ratios analysis tool for absolutely free
exclusive from 1st Stock Investment Center
by click the image on right hand side.
And start learning financial
ratios analysis start from
Accounting-based financial ratios,
Risk and leveraging ratios,
Liquidity ratios,
Profitability ratios,
management efficiency ratios,
operation efficiency ratios,
other ratios and finally
put it all together to help you on
decision making.
Economic Value Added (EVA)
Stock prices is
determine by how much
value a company can "create value"
for shareholders and for
how long it can sustain the profitability.
Knowing
what determine stock price and what are the
main ingredients to determining value will
definitely help you to become a
successful value investors. Earning an attractive
ROIC Return On Invested Capital, one in excess of
the cost of capital (WACC), is a prerequisite for
enhancing shareholder wealth.
NOPAT Net Operating Profit After Taxes is Net Income
equivalent in traditional financial model. NOPAT measure
the cash generated by operating activities.
Value Based Management (VBM)
Internal investors apply methodologies such as value
investing and value based management whereas
external investors apply fundamental analysis,
technical analysis and limited value investment
methodology and none on value based management.
Value
Based Management
focuses all decisions and actions on
maximize the shareholders value and future
discounted cash flows by
Creating Competitive Advantage and
prolong competitive advantage period.
Value Disciplines Framework
provide internal investors a framework to
create strategic advantage through Disruptive Innovation
technology, Product Leadership, Customer
Intimacy, and Operational
Excellence...
Stock Technical Analysis
Technical analysis
help traders
enter and exit stock market with razor-like precision
Technical Analysis is a method used to study
stocks price historical performance and predict how
they will perform in future by discards the company fundamental, market news, economic, politic
etc... Base on technical analysis theory, price reflects everything
in the market and move in trends, pattern and repeatable over certain time period,
that's why only study of price is require...
What's
New
Investment Guide
Investing Methodology
Interpret Financial Statements
|
Financial Ratios Analysis Lessons
Value Based Management (VBM)
Economic Value Added (EVA)
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