Module 16,17 Flashcards
How does the stupid money work inside the stock environment?
Stupid money takes time to realize inside of the stock market, it is characterized by taking its time maybe between (three days to five days) point blank to pound up.
In model 16 what is the kind of behavior that we are looking for?
Recognizing future of movement of relevant stocks, analyze announcement plus analyzing the value of the announcement.
When a stock announces important news what is likely to happen?
It’s either that she’s going to go up, rapidly beyond its announcement values, or that she will go up with an announcement that doesn’t reflect the value of the news but she still has upside, we can still make a profit off of it even if the news are outside they remind you “we are talking about stupid money in here”
Stupid money can?
Buy shares for a lot more money than it’s actually worth, as momentum traders we are looking for this potential in order to invest,over buying is a situation that stupid money allows.
Sometimes the rise is aggressive and this is an opportunity for a short because the brokers soon realize the real worth of the share and are in a hurry to cover their positions.
Price sale הנחת מחיר what do we need to do in order to evaluate the price worth?
In general it’s a pretty simplistic calculation that means that if a certain company invest 50 million in a company that is worth 50 million as well then the price value will go up to Folds.
How should we approach this process of finding a profitable stock when regarding financial reports?
It is better to enter a company that it’s already in get up and then start to analyze all the important details point
What you shouldn’t do with regards to financial report?
Do not enter a share before the muse has been reported, it is basically a gamble to do this action this is with regards to a trade that is in a short term and not in the actual lawn already bought period.
It’s text time for stock to go up and down in a sharp way and it is not likely to happen when an announcement is published at that stage.
Reports are a fundamental enhancer and they can influence even until a quarter.
What should we focus on when we read the report?
- end up in income with comparison to the last quarter.
*A rise in pure margin.
Effectiveness from expenses, Will the company manage to be more effective and relief more money in his pocket for each $Made.
• a correlation between the numbers and the market value of the company.
• how many cash does the company have for the rest of the activities?
