How to analyze philippine stock exchange
MACD analysis Observe the interaction between the fast and slow lines. When the fast signal line blue line rises above and crosses the slow MACD line red lineit means buyers are starting to dominate and a trader might consider buying that particular stock.
When the fast line falls below and crosses the slow MACD line, it means sellers are starting to dominate and a trader might consider selling that particular stock. This indicates point when you should buy the stock.
What is the rationale for this method of stochastic interpretation? And because stock traders aim to buy low and sell high, these crossings signal the appropriate time to buy or sell.
To better understand this section let us define what chart means which in investing is called price chart: In statistical terms, charts are referred to as time series plots. On the chart, the y-axis vertical axis represents the price scale and the x-axis horizontal axis represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right.
Philippine Stock Exchange News - Exchange - WSJ
While technical analysts use charts almost exclusively, the use of charts is not limited to just technical analysis. A chart is a picture that an investor can see how the price of a certain stock move over a period of time.
This is important because it is where one can see the trend. Also one can use this as basis on how a stock react to certain events in the company. Knowing this information gives you an idea how will the trend be in the next couple of daysweeks or months and thus help you in your investing decisions whether to hold, sell, or buy.
A simple computation is dividing the market price per share by EPS per share or dividing market capitalization by net income. It indicates that the perceived expectation of the market is that the company will perform well thus they are willing to pay more for it.
But upon looking closely when such two companies have the same EPS it only means that Company A is over priced as compared to company B. But if you are really serious in investing this is a must and I insist that you start reading the business column of the newspaper instead of the horoscope section. One thing more lest get the definitions of this two words from Wikipedia. Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
PSEI - Philippine Stock Exchange Index | View Stock | Investagrams
When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use; bottom up analysis and top down analysis. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts.
Technical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume. Supply and demand forex strategy think the description from Wikipedia is enough to explain these two words but let me further explain.
When buying how do you determine the price of a product? It is the same with the stock market. You need information to determine the right price for the stock you are buying.
With these information of course one should analyze so that a final prize could be pegged to such stock you are buying. In the Philippine Stock Exchange the rule is to not to be 3 level higher or lower from the last traded price based on the B oard optionsxpress stock commission and fluctuation schedule.
You get to see the Can a smsf borrow to buy shares properties and Liabilities debts of the company by looking at there Balance sheets or Statement of Position.
It also shows distribution of ownership of the company in its Stockholders Equity. With these information one can analyze the valuations such as Liquidity capacity to pay current debtsWorking Capital capacity to operate the business and some other else. This report will give you a picture of where does the company sell or earn, what expenses are spend to operate, and how much earnings did the company make.
How to pick winning stocks in the Philippines
Log in to you Citiseconline account and follow theses steps: From the Home page go to the Research tab. Categories CitisecOnlineCompany SnapshotFinancial AnalystFundamental analysisonline brokerReports.
Sorry for the long absence. I have just made the greatest investment in my life, finding the one. So lets go back then where we were. If ever you are in a seminar about stock investing they could probably discuss some accounting stuff like the one above.
Common Size How to analyze philippine stock exchange analysis is basically comparing one company to another by the percentages. The basic comparison will be the FS analysis express in ratios. This analysis primarily focuses on the Profit and Loss statement or also known as Income or Loss Statement.
For example Company A and B everything you wanted to know about stock market investing by cnbc pdf basic data.
Looking at the two company only at the amounts one should i buy morrisons shares say that Company A is better due to its higher sales but looking at percentages we now see the difference of the the two company.
Company B is better than Company A in terms mark up and management of expenses thus though Company A and B ended up with the same profit Company B shows a better management of cost and better pricing or market penetration.
Fundamental analysis | Investing in Philippines
Categories best online stock tradingCommon size ratiocompareFundamental analysisinvesting. Now that you know how valuable a chart is lets check out the PSE website for some charts. You can go to the Chart tab in the information link of stock you are looking at, for illustration purposes lets use FGEN: The basic charts are the Price chart of the high, low, open and last traded price of the stock.
Each is represented by a color. Usually the PSE opens the charts at a annual chart range. In the left side you can see the Chart options. You can change the date range which are 6 month, one year and two year.
Chart type could be Line, Bar, Candle Stick, and OHLC Open-High-Low-Close. You can also chose what indicator would you like to view. Two famous indicators charts are also shown: I am not an expert in Technical analysis but got this info from www.
Categories best online stock tradingchartistFundamental analysisPrice chartstock chartsstock price updateTechnical analysistechnicians. Here is another important Fundamental analysis that one can use in gauging a stock. Categories Asian Stock Marketbest online stock tradingFundamental analysisPhilippine Stock Exchangetechnical analysis charts.
Now technical analysis on the other hand is more of a forecasting analysis. Let say its as if you are reading the horoscope of your chosen stock to invest into. These is where the word TREND comes. Data use in these analysis are the prices and trade volume of the stock.
These analysis indicate the likelihood of the stock going up or going down. Usually it makes use of charts to visualize the possible outcome of the stock price. It shows when did investors and speculators bought a lot and at what price.
It might be a result of speculators hoping to make a short gain due to some news or other market forces that is happening in the world observe the current Greece debt crisis and debt releif and the recent Philippine election in which Noynoy was the leading presidential candidate. Technical analysis gives you an idea when the stock price may rise or fall. With that knowledge you will be able to plan when to buy good stocks buy stocks with good fundamental analysis when prices are down and sell when the price of the stock is near or above your target price or if the price surpass your breakeven price per stock.
You only gain when you have sold your stock above your total acquisition cost that is the price you bought that stock plus cost to by it like brokers commission, SCCP charges, Stock transaction taxetc.
Now tell me are these two words not worth knowing? Categories chartingdebt releifFundamental analysisTechnical analysistechnical analysis charts.