Foundational Understanding of Investing and Trading

Understanding of the Stock Market

I give you a basic ground level of what the stock market is by describing what stocks are and why you should invest in stocks. I also break down how Wall Street firms want the average person to invest and why that is not in the best interest to the individual investor.

Fundamental Analysis

I break down the basics of how to evaluate a company’s fundamentals from their income statement and balance sheet also known as their financial statement. Fundamental Analysis examines the strength and or weakness of a company. I’m also going to make a recommendation that you read Rule #1 by Phil Town. I give a brief breakdown of what he calls the four M’s which are Moat, Meaning, Management, and Margin of Safety. I also break down what Phil states as the Big 5 which is Earnings/Revenue, Return on Invested Capital (ROIC), Earnings per share (EPS), Book Value per share (BVPS), and Free Cash Flow. I also provide how to get and calculate the Big 5. Lastly, I will show you how to calculate your Margin of Safety.

Technical Analysis

I give you the basics of technical analysis starting with the three different trends the market does. Which are uptrends, downtrends and sideways trends. You will learn the basics of support and resistance and how you can determine it. You will also learn the three different stock charts which are line charts, barcharts, and candlestick charts. Candlestick charts will be the charts of choice and I’ll explain why. Lastly I cover the two types of chart patterns which are reversal pattern and continuation patterns. With reversal patterns you will learn the patterns of a double top, double bottom, head and shoulders, and inverse head and shoulders. For continuation patterns you learn the patterns of bull and bear flags, ascending and descending triangles, and the cup and handle. Plus so much more.