In investment valuation, financial modeling refers to the procedure and methodology performed to determine the value of an asset or financial security. Fundamentally, a business or company’s current value can be viewed as being derived from its future cash flow streams. An investor deciding whether to purchase or sell a stock, therefore, will be interested in estimating such value.
Your ideal investment or investment portfolio gives you the most opportunity for the risk you can bear. In this sense, it is important to understand the risk inherent in an investment before you look for the opportunity.
In an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low.
Some stocks, dubbed “safety stocks” by some investors, are stable enough that they tend to hold their value even when the rest of the market is in shambles. While these stocks aren’t immune to the changes and fluctuations in the stock market, they usually weather the changes well and are much less prone to sudden drops in value.
You need to make protecting your capital your first priority if you want to be successful.
Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more
A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities – financing, operations or investing – although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance.
A summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
The Average True Range (ATR) is an indicator that measures volatility.
The Moving Average Convergence-Divergence (MACD) indicator is one of the easiest and most efficient momentum indicators you can get. It was developed by Gerald Appel in the late seventies.
Volatility is founded on the standard deviation, which modifies as volatility expands and declines. The bands spontaneously widen when volatility expands and narrow when volatility declines.
Pivot Points use the previous period’s high, low and close which will define future support and resistance. Pivots Points are important levels chartists utilize to decide directional movement, resistance and support