Basic guide on how to find a good stock to invest in

[Jesus_ist_König]

All of this will be done on https://finance.yahoo.com/

Spoiler: Step 1

Select any stock you want to invest in and look it up on yahoo finance

Spoiler: Can your stock pay all of its debts spontaneously?

Click on Financials -> Balance Sheet

Spoiler

Total Assets -> Current Assets

Spoiler

Total Liabilities Net Minority Interest -> Current Liabilities

Spoiler

Now divide Current Assets with Current Liabilities i.e. Currents Assets/Current Liabilities the number you get should always be higher than 1. Its an indicator to show if the stock you invest in can spontaneously pay all its debts.

Spoiler: Is your stock efficient?

Again go on Financials -> Income Statement

Spoiler

Operating Income/Total Revenue
This should always be at least 15% or 0,15

Spoiler: Example

Lets say a fruit shop makes all sorts of smoothies. If for example their Operating Income/Total Revenue is less than 15% it means that a lot of the income goes into paying all the fruits to keep the business going, which also shows that they are not efficient because a lot of their income goes into keeping business moving. Through advertising and then having more customers they can for example buy the fruits in bulk and then the efficiency of the store goes up.

Spoiler: Is the business growing?

Financials -> Cash flow

Spoiler

Over the years the Free Cash Flow should be always increasing.

Spoiler: Play it safe

Analyze all the steps the CEO or owner of the stock does. If lets say Elon Musk says "Ugh cars bore me and I want to do smth with Space X" then obviously you should less all your Tesla shares since it will nuke down.

Spoiler: Source

 

[Jesus_ist_König]

@ilovearcherqueen

 

[ilovearcherqueen]

Mirin.
Note: No matter how well a stock does, it is almost guaranteed to go down based off the headlines.
E.g
Iran war: Shell and BP sky rocketed when the war started. It crashed as soon as a ceasefire was announced.

Netflix went down 10 percent yesterday because of them increasing their fees.

A former shoe/trainer company said that they are going to start using AI. it makes zero sense, but their share price went up by 300 percent over night

The stock market always reacts to headlines. Never the reason behind it.

 

[Jesus_ist_König]

Mirin.
Note: No matter how well a stock does, it is almost guaranteed to go down based off the headlines.
E.g
Iran war: Shell and BP sky rocketed when the war started. It crashed as soon as a ceasefire was announced.

Netflix went down 10 percent yesterday because of them increasing their fees.

A former shoe/trainer company said that they are going to start using AI. it makes zero sense, but their share price went up by 300 percent over night

The stock market always reacts to headlines. Never the reason behind it.

What are tools or apps for me to stay up to date?
I currently have Nvidia (instagram, twitter??)
where do you read all of this? american news?

 

[ilovearcherqueen]

What are tools or apps for me to stay up to date?
I currently have Nvidia (instagram, twitter??)
where do you read all of this? american news?

On my windows laptop i have this free github repo i installed RSS Guard. there is basic setup you have to do, you can PM me if you need help setting it up or use AI to guide you through. What is does is, it constantly scans 100's of news sources (depending how many you put) and every set time interval you set. - I did 5 min. It will fetch all the latest headlines from top sources show up as a popup. its completely free and really good, keeps you updated. i just got this notification while writing this

Its customisable, you can put key words and it will scan important relevant news. It can do sports too.
Best it's free and open source.


On my phone i have yahoo finance and bloomberg.

Yahoo finance is a bit shit in showing you the latest headlines so i use bloomberg. Bloomberg is amazing.
i use yahoo finance to read through articles. Bloomberg is expensive. (like 300 GBP/year) So i just use it for headlines. On yahoo finance you can set notifications. I heard people use twitter to keep them updated, i need to try it out. It seems good if you have good sources

 

[Jesus_ist_König]

On my windows laptop i have this free github repo i installed RSS Guard. there is basic setup you have to do, you can PM me if you need help setting it up or use AI to guide you through. What is does is, it constantly scans 100's of news sources (depending how many you put) and every set time interval you set. - I did 5 min. It will fetch all the latest headlines from top sources show up as a popup. its completely free and really good, keeps you updated. i just got this notification while writing this View attachment 4930343


Its customisable, you can put key words and it will scan important relevant news. It can do sports too.
Best it's free and open source.


On my phone i have yahoo finance and bloomberg.

Yahoo finance is a bit shit in showing you the latest headlines so i use bloomberg. Bloomberg is amazing.
i use yahoo finance to read through articles. Bloomberg is expensive. (like 300 GBP/year) So i just use it for headlines. On yahoo finance you can set notifications. I heard people use twitter to keep them updated, i need to try it out. It seems good if you have good sources

Wow sounds cool the only problem is im not a notification guy, i always have them off and it made me stop checking my phone for notis and its relieving.

So i dont like pop ups, can you set it up on pc without pop ups?
And any other apps like cnb for the phone for example ??

 

[ilovearcherqueen]

Wow sounds cool the only problem is im not a notification guy, i always have them off and it made me stop checking my phone for notis and its relieving.

So i dont like pop ups, can you set it up on pc without pop ups?
And any other apps like cnb for the phone for example ??

I get you, i also turned off all notifications, you can set it for longer intervals like 1 hour/ 2 hours and it will just popup with the latest headlines. Or you can completely turn off the notifications.

 

[Deleted member 77427]

All of this will be done on https://finance.yahoo.com/

Spoiler: Step 1

Select any stock you want to invest in and look it up on yahoo finance

Spoiler: Can your stock pay all of its debts spontaneously?

Click on Financials -> Balance Sheet

Spoiler

View attachment 4929970

Total Assets -> Current Assets

Spoiler

View attachment 4929974

Total Liabilities Net Minority Interest -> Current Liabilities

Spoiler

View attachment 4929977

Now divide Current Assets with Current Liabilities i.e. Currents Assets/Current Liabilities the number you get should always be higher than 1. Its an indicator to show if the stock you invest in can spontaneously pay all its debts.

Spoiler: Is your stock efficient?

Again go on Financials -> Income Statement

Spoiler

View attachment 4929984

Operating Income/Total Revenue
This should always be at least 15% or 0,15

Spoiler: Example

Lets say a fruit shop makes all sorts of smoothies. If for example their Operating Income/Total Revenue is less than 15% it means that a lot of the income goes into paying all the fruits to keep the business going, which also shows that they are not efficient because a lot of their income goes into keeping business moving. Through advertising and then having more customers they can for example buy the fruits in bulk and then the efficiency of the store goes up.

Spoiler: Is the business growing?

Financials -> Cash flow

Spoiler

View attachment 4930006

Over the years the Free Cash Flow should be always increasing.

Spoiler: Play it safe

Analyze all the steps the CEO or owner of the stock does. If lets say Elon Musk says "Ugh cars bore me and I want to do smth with Space X" then obviously you should less all your Tesla shares since it will nuke down.

Spoiler: Source

Good basic guide.

On my windows laptop i have this free github repo i installed RSS Guard. there is basic setup you have to do, you can PM me if you need help setting it up or use AI to guide you through. What is does is, it constantly scans 100's of news sources (depending how many you put) and every set time interval you set. - I did 5 min. It will fetch all the latest headlines from top sources show up as a popup. its completely free and really good, keeps you updated. i just got this notification while writing this View attachment 4930343


Its customisable, you can put key words and it will scan important relevant news. It can do sports too.
Best it's free and open source.


On my phone i have yahoo finance and bloomberg.

Yahoo finance is a bit shit in showing you the latest headlines so i use bloomberg. Bloomberg is amazing.
i use yahoo finance to read through articles. Bloomberg is expensive. (like 300 GBP/year) So i just use it for headlines. On yahoo finance you can set notifications. I heard people use twitter to keep them updated, i need to try it out. It seems good if you have good sources

Mirin bro thanks for sharing this with us.