Skip to main content

Fundamental Analysis in Stock-Picking



You may be asking yourself why stock-picking is so important. The answer is simple: wealth. If you become a good stock-picker, you can increase your personal wealth exponentially.

Let's start by delving into one of the most basic and crucial aspects of stock-picking: fundamental analysis. It is often a great starting point to picking good companies.

The goal of analyzing a company's fundamentals is to find a stock's intrinsic value. If the intrinsic value is more than the current share price, your analysis is showing that the stock is worth more than its price and that it makes sense to buy the stock.

The premise behind finding intrinsic value is that a company is worth the sum of its discounted cash flows. In plain English, this means that a company is worth all of its future profits added together. And these future profits must be discounted to account for the time value of money, that is, the force by which the $1 you receive in a year's time is worth less than $1 you receive today.

In general, fundamental is thought of as a long-term strategy, while technical is used more for short-term strategies.

Source: Investopedia

For more about stock trading, Digital Nomad Here.
Labels:

Comments

Post a Comment

Popular posts from this blog

OpenShot Add Text: Subtitles and Captions

OpenShot is an open source video editing soft. Adding subtitles and captions is quite tricky. Adding subtitles takes effort. Suggestions by GeekOutdoors - You can have the soundwave form displayed so you know where the talking and pausing occurs. - You also use the green marker to help you decide how long the subtitle should be shown. - Encode the subtitles in Notepad so you can easily copy and paste it later on - Turn off the snapping tool which is on by default; to remove subtitle overlap For captions, GeekOutdoors, - used footer text, shortened the duration to like 3 seconds - if you want advanced editing of the text, you will need to download and link Inkscape to OpenShot Check out  basic OpenShot tutorial  or  list of OpenShot tutorial .
Post a Comment
Read more

Cyanosis Verus Pallor

Don't you ever get confused with cyanosis and pallor? When will you say that a person is cyanotic or pale? Remember that cyanotic is taken from cyan or blue. Cyanosis is a bluish discoloration because of deoxygenated hemoglobin in the blood. Pallor on the other hand is due to reduced amount of oxyhemoglobin in the mucous membrane. You can say that an American is cyanotic when you observed that the skin as wells as the nailbeds are dusky (sky color during twilight). In pallor, you will observe the person to be pale like blood has been sucked out. Another major difference between the two is that in pallor body is cool to touch When cyanotic is bluish, pallor is whitish. That way, it is easy to remember the difference between the two at first glance.
Post a Comment
Read more

Get into Web Hosting without Spenting a Cent

Another money making idea you can utilize using the web is through selling web hosting. You can now get into a reseller account for free. Either you sell paid hosting or offer free web hosting and having the client post your ads in their website. With Resellerspanel.com you can sign up for free as a reseller of their hosting; Yes, no sign up fee. This would be a great start for all those broke up there looking for a way to make money onlin; has been in existence for over 15 years! With MyOwnFreeHost.net you can give 300MB free hosting and in return get your ads posted in your clients web site. All they ask is a link for upgrades later on on your site. If you are looking for web hosting for free for your website, check out 000webhost . They have been in the business for over 10 years. There is also InfinityFree  which have been in business for 5 years. I am mentioning about the years in business because with longer business years, it is less likely for the company
1 comment
Read more