When value adjusting a fair price for a stock, what PE do you use? Do you average the industry?
Answers: The ratio that shadow is referring to is commonly called PEG ratio. I prefer to invest in companies with a peg under 1
I am going to disagree with the shadow, as growth rates are subject to some interpretation by annalists. I think it is often difficult to compare company A to industry X.
I feel comparing a company against itself is the best and most accurate way to go.
Look at the trailing PE ratios during differing markets. For instance. What did the companies stock trade at during historical periods. I would look at the period of 1970-1980 ( a flat market) 1987 and 2001-2002 are good down periods. the period from 1996-2000 (a rising market) and 2003-2007 post bubble,
You will probably spot a trend in the historical PE ratios. Compare the company now vs itself during these economic times. How did its earnings respond? How did its growth respond?
You will have to do some research yourself, but it is called investing, not gambling.
The P/E can vary dramatically by company and by industry. For example, bank P/Es are usually very low compared to tech stock P/Es. There is no one number that you can use in all situations.
There are two things that you can do. One is to compare the P/E with that of other companies in the same industry. That will give you an idea of whether the company is cheap, comparable, or more expensive than its peers.
You can also compare the P/E to the projected growth rate. If the P/E is similar to the growth rate, or less, that usually indicates an inexpensive stock. (Of course, research the reason why. The P/E could be low because the company is a train wreck.) If the P/E is three times the growth rate, many people will consider that to be expensive.
What is a 30/70 RSI split and how do you use it to decide when to get in and out of a stock?
Answers: If you look at the chart it is very easy to see how the 30/70 RSI lines can be very helpful in determining buy/sell points.
Just another tool in the box IMO.
Type in DMLP as an example ... the 30 buy and 70 sell is almost perfect over the 3 year period.
Then type in symbols of stocks you know well and see how you fared in buying low and selling high !
RSI is leading indicator to judge the velocity of price change of a stock.it oscillates between 0 & 100.
30 is lower limit & 70 is the upper limit from where a stock change its trend either up or down.
buy when a stock cross above 30 and sell when a stock cross 70 on the down side.
How brisk does a stock supply once I put contained by my writ to put on the market at a indubitable amount?
Is it instant? Like 1 business day, or what would be the average time frame it take to sell a stock? What if not a soul wants to buy it?Thanks :)
Answers: When you put within a limit establish to buy on the ask or sell on the bid you'll see the volume alter faster then your blind can refresh to see if your instruct was full up.
This should be true for at least 95% of your trades.
^^^Of course you obligation 2 monitors or streaming quotes.
Also depends on the size of your order - if someone is one and only willing to buy beside a bid on the Level II quote of 10 and you're trying to sell 2,000 shares after you might have to lurk to get the rest of your charge filled as your remaining 1000 shares would afterwards be placed on the ask.
If no one desires to buy it you will never sell it. Otherwise it will be purchased as soon as someone is predisposed to pay the price you want to go for. the time frame can vary greatly from 1 second to months. for example if you bought stock XYZ at $10 a share and you required to sell at $15 a share it would give somebody a lift until the stock got close to $15 for the directive to go through (most likely). however if you considered necessary to sell one and the same position at $9.50 (assuming it was still at $10 a share) the transaction would turn through almost immediately (as long as you vend close to market price the directive should go through quickly). another inconsistent, although it rarely comes into play is how recurrently the stock is traded, for instance if it gets traded once every 3 days your stock may not achieve bought for a week even if you were trying to trade your stock close to the current price.