How To Add Indicators & Financials To Your ChartIn this Tradingview tutorial video, we take a look at how to add indicators & financials to your chart.
We'll discuss how to access them, where you can go to learn more about the specific indicator/financial & what you can do in order to customize there appearance and/or location on your chart.
If you have any questions please leave them below & I promise that I'll respond.
See you guys next video!
Akil
Financials
How to Choose the Right Stocks to Invest inIn this analysis, I'll be talking about the two approaches you can take in choosing the right stocks to invest in: the top down, and bottom up analysis methods.
I have seen posts explaining the top down and bottom up analyses by time frames, but that's not correct.
Time frames don't have anything to do with this approach.
If you wish to check out my other educational post on how to properly use the fibonacci retracement tool (as many people get confused with this as well), click on the post below.
Bottom Up Analysis Explained
- The bottom up method is the method that the majority uses to analyze stocks.
- The investor first chooses a stock that he wants to potentially invest in.
- Then, he analyzes the financials of the company, and compares it with that of other companies in the same industry
- Afterwards, he assesses the industry itself, and decides whether the industry as a whole is prominent and healthy
- Lastly, he takes a look at the entire macroeconomic situation, and assess if this is the best time to get in the stock that he has his eyes on.
Top Down Analysis Explained
- With the top down method, everything is done in the same way, but in reverse.
- The investor first asks himself what the macroeconomic situation is like, and which country he should invest in.
- He even takes a look at factors like demographics change (which is actually much more important than most people think it is)
- Afterwards, the investor takes a look at which sector he should invest in.
- Once he chooses a sector, he goes through all the individual companies he could potentially have his money on
- He goes through a list of the companies in that sector, and compares each and every one of them.
- Once he chooses the most prominent company in the sector, he takes a look at the company's financials, and decides whether to invest or not.
Conclusion
Broadly speaking, there are two methods of approach in choosing the right stocks to invest in. Since most retail investors hardly conduct top-down analysis, it might be a good idea to test out different approaches in choosing winning stocks.
If you like this educational post, please make sure to like, and follow for more quality content!
If you have any questions or comments, feel free to comment below! :)
PER, PBR, ROE, EPS Explained for Beginner InvestorsLegendary stock investor Peter Lynch once said that there’s a reason why the majority of people make money in real estate, but not in the stock market.
People spend months on finding the right property, whereas in choosing the right stock to invest in, they only spend a few minutes.
In this post, I'll be explaining the concepts of:
1) Price Earnings Ratio (PER)
2) Price-to-book Ratio (PBR)
3) Return on Equity (ROE)
4) Earnings per Share (EPS)
by explaining the formula, what they tell us, and the best way to understand these concepts through an example.
Return on Equity (ROE)
So let’s start with the Return on Equity, or ROE.
This measures the profitability of a company in relation to stockholder’s equity.
The ROE is calculated by dividing the net income by the shareholder’s equity.
Price Earnings Ratio (PER)
Next, we have the price earnings ratio, or the PER.
This is a good tool to determine whether a company is overvalued.
The PER is calculated by dividing the current share price by earnings per share.
For instance, if a company’s share price is at $100, and their earnings per share is $10, this gives them a PER of 10.
Price-to-book Ratio (PBR)
Then, we take a look at the price to book-value ratio, or the PBR.
This measures the market’s valuation of a company relative to its book value, and is calculated by dividing the market price per share by the book value per share.
Earnings per Share (EPS)
Lastly, the EPS, or earnings per share.
This is simply the company’s profit divided by the outstanding number of shares outstanding, and works as a good indicator of how profitable a company is.
Example
- Let’s take a look at an example to help your understanding.
- You currently have $100,000, and you decide to open a restaurant.
- You are required to pay $100,000 in deposits, and $3,000 in monthly rent.
- You started this restaurant in the form of a limited liability company.
- You started the company with $100,000.
- Given that you issue shares that are worth $10, you issue 10,000 shares in total.
- A year later, you check how well your business has done.
- You find out that the restaurant did $300,000 in revenue, and after subtracting all costs, you’re left with $30,000.
- With this, you can calculate the return on equity by dividing 30,000 by 100,000, which gives you an ROE of 30%.
- Through the ROE, you look at how much return your own money was able to generate in profits.
- From the perspective of an investor, the higher the ROE, the better.
- You can also calculate the EPS, or earnings per share.
- In this case, the restaurant generates $30,000 in profits.
- So if we divide that by the number of shares, which is 10,000, we get an EPS of $3.
- Now let’s assume that you ran the business for 3 years, and you now want to sell your business to someone else, so you can move on to do other things.
- How much do you want to sell the restaurant for? After 3 years, you now have loyal customers, and it consistently generates $30,000 in profits every year.
- So, you decide to sell the restaurant for $200,000 in total, with a $100,000 premium on top of the deposit.
- If someone buys the restaurant for that price, it means that you and the other party agrees that the business is worth $200,000.
- Now if this restaurant is sold for $200,000, that means the $10 shares you hold are sold for $20.
- When we invest in stocks, this is how we make money.
- With all the information above, we can calculate the PER and PBR.
- If a restaurant that generates $30,000 in net profits gets sold for $200,000, the PER is 6.7.
- And then, we also have the PBR.
- You started the business with $100,000 of your own money, and sold it for $200,000, which gives you a PBR of 2
- For the PER and PBR, the lower the better.
- A low PER means that you are buying a company that generates a lot of net profit for a cheap price.
- Same for the PBR. The lower it is, the more undervalued it is.
Conclusion
The PER, PBR, ROE, and EPS can be great tools to help us identify whether a stock is a good buy or not. Understanding these concepts are imperative for beginner investors.
If you like this educational post, please make sure to like, and follow for more quality content!
If you have any questions or comments, feel free to comment below! :)
My Personal Plan For 2021I’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades.
My Goals For 2021
In this article, I want to talk about my goals for 2021, and how exactly how I’m planning to achieve the goals, so I thought it would be fun to write them down and share them with you.
Now, as you know, goals need to be specific, measurable, attainable, relevant, and time-bound.
Now, I will show you my financial goals both for trading, because after all, this is what I love to do, but also for wealth building.
After that, I will share with you the goals for my company, Rockwell Trading as well as my personal goals, and also my goals for this channel.
FINANCIAL GOALS
Trading For Income
For my financial goals, let’s kick things off and start with trading.
The plan here is to trade for income, and my target goal is to make $15,000 per month. This is meant to cover my living expenses.
Now, here’s the deal. This is a rough estimate of how much I have in living expenses. So this means that I am looking to make $180,000 per year.
For this trading plan, I opened a new account. I put in $250,000 into this new account, and it is a margin account.
Since having a margin account doubles your buying power, this turns that $250,000 into $500,000 of buying power that I will use for trading to achieve this goal.
To figure out how much buying power I needed, I needed to figure out my living expenses.
So as far as I know, my living expenses are around $9,000 per month.
You might be wondering,
“If your living expenses are only $9,000 a month, why would I try to make $15,000 per month?”
Well, very easy, there is this thing called taxes and I want to account for it. This cost is estimated.
Quick side note. By now you may be wondering why I seem to be unsure of exactly how much my living expenses are. I will cover this later in this article.
So, again, the goal here is to trade for income. My next goal is for wealth building.
Wealth-Building Goals
One of the avenues I like to use for building wealth and one I’ve very knowledgeable about is real estate.
So the plan here is that this year, I plan to buy a 10 million dollar apartment complex.
Now, I’ve already been investing in apartment complexes for the past few years, but the rough idea of the financials is:
- 7 million dollars will be used through financing. So I will find a bank that is basically financing 30% of this.
- I’m actually planning to raise 2 million dollars through investors.
- The last one million dollars will be my own money that I’m putting into this deal.
This is very typical for how investing in commercial real estate is done.
Now, here is the plan. The goal is to sell this for 15 million dollars in three to five years.
So we’re selling it for 15 million.
Then, of course, we have to give back 7 million dollars to the bank, right? Because we’re borrowing 7 million dollars.
2 million go back to the investors because everybody needs their money back right?
Then 1 million dollars will need to go back to me because I also want to make my money back.
Now, this is only ten million dollars. That leaves five million dollars in profits that can be divided among the investors and me.
So essentially, I’m planning on making two million dollars based on the one million dollars that I invested, which would be a very healthy return.
Throughout this whole process, I’ll show you exactly how this process unfolds as it happens, and what apartments I’m looking at with video updates on my YouTube channel as they happen.
My other plan for this wealth-building goal is possibly buying a resort in Mexico, and here’s why.
Those of you who already follow me know with my company, Rockwell Trading, we do have a Mastermind program, and we have Mastermind meetings at least three times a year.
Now, recently due to covid, we weren’t able to have these in-person meetings, but if buying a resort in Mexico is feasible, then not only could we host our Mastermind meetings here in the future, I can also rent these rooms out for Airbnb.
Now while I have experience with real estate, I’ve never been in the hotel business, so this might be a really stupid idea, but maybe it is a good idea.
Right now this is just a goal, and will look into the details deeper to figure out if this will be feasible.
Cryptocurrency
So we talked about trading for income and wealth-building with real estate.
My next financial goal has to do with something that I definitely have on my radar is that this year, and that is cryptocurrencies.
Some of you know that in the past, I’ve been very, very public about being completely against cryptocurrencies, but I can’t deny that Bitcoin had a fantastic run this year.
Bitcoin is now trading above $30,000. So guess what? Seems I was wrong.
Moving forward I will definitely be looking into Bitcoin and other cryptocurrencies more closely, and fortunately, I have access to some fantastic resources of experts on cryptocurrency that I will interview for myself.
I will also share these findings with you on my YouTube channel, and future blog posts throughout the year.
My Goals For Rockwell Trading
At my company, Rockwell Trading, we offer The PowerX Optimizer Software, and I am determined to make this the very best software in the world.
For this, I am planning to release PowerX Optimizer 2.0 in the first quarter of this year, and I’m also developing an awesome trading log that will be integrated with PowerX Optimizer.
So why do you need a trading log? Well, with this trading log it will be easy for you to analyze your trades.
We all need to analyze our trades, and so this is definitely something that I will tackle this year.
One other feature that I want to look into is possibly being able to execute trades through PowerX Optimizer by integration with actual brokerages.
As it stands right now, you use The PowerX Optimizer to find stock, and then you have to enter the trades into a broker platform separately.
I want to see if I can make this process easier, because, I have the same challenges.
I see it on PowerX Optimizer, and now I have to enter it into the broker platform, so not only making trading easier for myself, but for everyone who uses The PowerX Optimizer.
I’m constantly thinking of ways to improve The PowerX Optimizer, because not only do I believe in it, but I believe in Rockwell Trading as a whole.
I believe this company, Rockwell Trading, can be an Inc 500 company.
I am super passionate about trading, creating the best trading tools, and showing you the very best trading strategies that you can use to grow your account.
It’s because of this drive I have to provide awesome value for you, that makes me believe we can make their list of the fastest-growing companies.
Now I’d like to move on and share my personal goals for 2021 with you.
PERSONAL GOALS
Writing More Books
The first of my personal goals for this year is, I want to publish two more books.
So the first book, as some of you are already aware, will be on The Wheel strategy, which is a trading strategy for trading options.
Right now I’m in the process of giving the book one final proof-read before sending it to the printers, and I only have a few more chapters to go, but I will be rolling this one out shortly in the coming weeks.
The second book I’m thinking about writing will cover wealth-building strategies, which will cover what I’ve been doing over the past years to become a multimillionaire.
When I came to the United States in 2002 18 years ago, I had $30,000, and today I am a multimillionaire, so I know a thing or two about how to build wealth.
I think this would be another great book to share with you, that you can get a lot of value from.
Buying A Plane
Here is an absolute crazy personal goal that I have for this year, and you might actually say that this is a stupid idea, but for years I have been dreaming & fantasizing about owning a private plane.
I’ve decided that 2021 might be the year where I make this a reality.
Now again, this could be an absolutely stupid idea.
Don’t get me wrong, I’m pretty smart about how I spend my money, and I’m not planning to buy a 10 million dollar jet because here’s the deal.
A private plane is an expense, not an investment, right? However, everybody is allowed to spend money however they want, and this might be one of the things that I decide to splurge on.
For other people, it might be exotic vacations, for me, the idea here is a private plane.
So it’s smaller like an executive plane, and this is the kind of plane that I’m looking into.
I’m definitely not planning to fly it myself, so no worries there. I’m planning to have a pilot fly it for me because I have no idea how to do this.
I will look deeper into this and see if buying a plane actually makes sense or not?
These are some of my personal goals. Now, in terms of habits, there are also a few habits that I want to start doing this year.
HABITS
Keeping Track Of My Finances
First of all, I want to track everything. What do I mean by this?
Well, when I say track everything, I want to get better at tracking my wealth, which would be my net worth.
Now I have a rough idea of what my net worth is, but I should be probably getting much better about this so that I know at any given time how many millions I have.
You see, the challenge is once you have money, it’s not that important anymore, but I want to do this and I also want to get a little bit better about tracking my expenses.
Remember earlier, when I was talking about how I wasn’t sure exactly what my monthly expenses were?
This is where being better at keeping track of finances, as a whole comes into play.
I said that I’m planning to trade for income on my YouTube channel and that I think I need $15,000 a month, but I actually don’t know exactly how much I need.
So I need to get better about keeping track of my finances.
Health & Fitness
I also want to get better at tracking my weight and calories. I’m 51, so I’m getting older, so it’s important to take care of this.
I want to track everything from my water intake, calorie intake, and what kinds of food I’m eating.
I also want to keep track of my workouts, and as of now, my workouts are very, very easy to track because it is actually zero, so I want to be better at getting exercise as well.
My YouTube Channel
Now how does all of this affect you? I mean, why would you even care about all this?
Well, this is the beautiful thing about my channel. If you’re interested in what I’m doing with these goals, I’m planning to post videos there throughout 2021.
Five times per week, I will post a daily stock market update.
I used to talk about what was going on in the markets during the “Coffee with Markus” live streams.
These are now separate, daily videos, 5 days a week, and this will be in four minutes or less.
Two to three times per week, I will continue the “Coffee with Markus” live streams, but without the market updates, as they will now be in the other videos.
I am planning actually keeping you updated on the wealth-building strategies I was talking about, with video updates.
I will post videos updating everyone on the progress of my goals, and, of course, I also will continue to post videos covering the very specific strategies that I will use for trading.
When it comes to trading, I will continue to show you exactly the two strategies that I’m currently using, which is The Wheel strategy, and the PowerX strategy.
If I decide to trade any other strategies this year, I will post videos about that as well.
I will share videos with my real estate adventures, which as of right now, is where I’m planning to invest in a 10 million dollar apartment, possibly buying a resort in Mexico.
I’ll be sharing everything with you, the good, the bad, and the ugly.
I also want to cover topics I haven’t covered before, for example, credit cards.
I have a bunch of credit cards and I’m using them wisely, so for instance, topics about credit cards like, “The Apple Card, is it worth it?” I have 3 American Express cards so I’ll cover whether or not they’re worth it.
I also can tell you that right now I have 650,000 airline miles, so I will show you exactly what I’m doing to get all of these points because, with 650,000 airline miles, you can go around the world several times.
Another topic of interest is that interest rates are low right now.
So we will talk about, for example, LOC these lines of credit, or does it make sense to refinance your home?
I have been looking into refinancing my home and I will let you know what I found of whether it makes sense or not, and other strategies to employ when interest rates are low, and then when interest rates are high.
For example, when interest rates are high, I will cover high yield savings accounts as well as CDs.
YouTube also has these so-called “shorts” and these are videos below one minute or less.
These will be videos that I do as a quick reference guide. So for example, what is the bid/ask spread? What is Theta in options?
Recap
So let’s just briefly recap, I wanted to share my goals with you for 2021 and they are:
- Will publicly trade here for income with a new $500,000 margin account, with the goal of making $180,000 a year.
- For wealth building. I’m planning to buy a 10 million dollar apartment complex, and am looking into buying a resort in Mexico for the Mastermind meetings for Airbnb?
- I will look into cryptocurrencies and see which cryptocurrency. Does it make sense to invest in Bitcoin? Are there any other cryptocurrencies worth investing in? Is it better to maybe invest in gold or silver?
- I will look into publishing two books.
- Improving the PowerX Optimizer Strategy.
- I’m looking into if a private plane is a stupid idea or not.
- Keeping better track of my health and finances.
- Becoming an Inc. Fastest Growing Company.
- Providing more content on my Youtube channel.
So long story short, this will be an exciting year. I am super excited for 2021.
This is the first time ever that I’m doing anything like this, and I will really be pulling back the curtain throughout to show you everything that I personally do.
I hope that you find this not only interesting but that these are also strategies that you can employ in your life right away, but this really depends on what stage of life you’re at.
You might be at a stage where you are still trading for growth, trying to build an income, and I will show you very specific trading strategies for doing this.
It might be that you have a retirement account and you’re looking back right now.
You’re getting your initial statement and you say,
“You know what? This hasn’t been doing anything over the past year and I want to have better wealth-building strategies.”
If so, there will be videos on my channel as well.
Sometimes you might be wondering,
“Does it make sense for me to open an American Express account or to have an American Express credit card?”
Or something relating to this.
And I will share all of this with you. Hope that you’re enjoying this. And this is what you can expect from me in 2021.
How to chart financials for any companyThis chart shows some key financial metrics for Netflix. We're using the multi-chart layout feature to show the following financial situation:
1. Netflix Quarterly Revenue
2. Netflix Cash & Equivalents
3. Netflix Total Debt
4. Netflix Forward Price-to-Sales ratio
With the financials feature on TradingView, we could chart a lot more than this. Including EPS, R&D, PE ratio, EBITDA, Market cap, and more. We wanted to share this layout with you to demonstrate what's possible. Whether you're a value investor or a short-term trader you can chart the financial situation for a company to better understand the fundamentals that are driving price or telling the story behind a particular asset.
For example, Netflix's cash is growing and so is Netflix's revenue. But this chart layout shows that it's not all good news. Netflix has taken on some massive amounts of debt. Debt continues to rise as content becomes more expensive. This post is not investing or trading advice, instead it is educational. As a TradingView member, this data is available to you right now. You can examine the financial situation for Netflix or other companies.
To get started, click the Financials button located at the top of your chart. The Financials icon looks like the bar chart 📊 emoji. Once you've opened the Financials menu, you can sort by Income Statement, Balance Sheet, Cash Flow, and Statistics. You can also use the search field to find specific financial metrics that are relevant to you.
Before you head to the comments to leave a positive review with some interesting feedback 😁, we have a few more tips to share:
1. When you open the Financials menu, you can hover your mouse over a Financial metric. To the far right of that metric select either Quarterly or Annual. Quarterly will show you the numbers a company reported every 3 months or quarter and annual will show what a company reported every 12 months or full year.
2. For other financial metrics, when you hover your mouse over them, to the far right you will see a question mark icon appear. You can click this question mark to get a definition for that specific financial metric. So if you ever need to learn something new, it's just one click away. Below we've shared some examples:
Price to Sales Ratio
Research and Development
Basic EPS
Free cash flow
Enterprise value
Thanks for reading and following along. If you have any questions or comments, please write us below. You can also leave feedback or product requests. Our team is listening! 💙
REPOCALYPSE NOW!This is serious. Find out what 'REPOCALYPSE' is about. Protect your positions very carefully.
Get real - I don't know when it's happening nor does anybody else.
REPOCALYPSE is not just doom-saying stuff, though it might appear sensationalist. This is reality mates.
Those who keep there heads in the sand and do not take protective actions will be flushed out.
DISCLAIMER: All statements here are over-simplifications of very complex issues, and are speculative opinion. This is not constructed as advice for making decisions about trading in securities. Your losses are your own.
Declaration : This post is consistent with Tradingview's house rules on text-based analyses.
Money Management & Psychology 101SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY
Money Management/Psychology
Cycle of Market Emotions
The Upturn
• Optimism: The normal financial specialist enters the market feeling hopeful. They may likewise have elevated requirements for the profits in which they are involved.
• Excitement: When the market goes up, the desires begin to end up noticeably a reality and the financial specialist encounters commitment.
• Thrill: The market proceeds up and the financial specialist is excited.
• Euphoria: As the market achieves its peak, the financial specialist is euphoric and very certain that the market will proceed up.
The Downturn
• Anxiety: The market starts to plunge, producing sentiments of nervousness (Point 5).
• Denial—The market keeps on falling, and the financial specialist experiences dissent with so many considerations as "It's alright, I'm in it for the long run," and "This is only a transitory misfortune," (Point 6).
• Desperation and Panic—As the market cycles bring down still, sentiments of urgency and anger follow (Points 7 and 8, separately).
• Surrender—Panic, in the long run, offers an approach to surrender when the financial specialist supposes "How might I have been so off-base? I cannot deal with being in the market anymore. I can't take any more misfortunes," (Point 9).
The Bottom and the Recovery
• Depression: While the financial specialist flounders in wretchedness (point 10), the market winds up in a sorry situation and offers a route to another bull.
• Hope: As the market keeps on reinforcing, the financial specialist is confident that the market will proceed up (Point 11).
• Relief: Once the market affirms it is in an uptrend, the speculator feels alleviation, however, they are as yet not sufficiently sure to contribute (Point 12).
• Optimism: The financial specialist holds up until the point that they feel idealistic once more (Point 1 or frequently significantly later) before re-entering the market. As we portrayed over, this typically does not occur until the point that they have officially missed a huge bit of the up move, and their opportunity to recover misfortunes with it.
Position Structure
There are several trading software’s, which empowers the individuals to either structure or drive their framework by an individual or by position. Before the data is set-up in the control tables, an individual should choose which technique to utilise. The framework forms the data contrastingly relying upon the person’s decision. When the software is driven by an individual, work codes are utilised to arrange work information into gatherings. These codes are utilised to connect individual information to work information. When the software is driven by position, despite everything, work codes are utilised to make general gatherings or occupation arrangements in the association, for example, EEO (measure up to business opportunity) and pay review information.
Prediction of the S&P500 and NIkkei based on financials and CPIIn the following content i will explain how you can forecast the market with CPI (inflation) and Financials:
If we look at our figure we can say a few things, i will assume them below:
1. ABN AMRO (a dutch Financial) is highly correlated to the NIKKEI225 index.
2. Since nearly May 2016 we can see that the CPI (inflation)-chart has change 5 times. If we look at the Nikkei225 index we can see a few things: when the inflation in the US rose, the Nikkei225 fell 4 out 5 ( a chance of 90% or mathematical: a chance of 0.900). Using maths we know that ABN AMRO has an statistic correlation of 0.70 < r < 0.90 (70% - 90%) to the Nikkei225.
Conclusion: The fInancials are following the NIkkei225, and in turn the Nikkei is following the US CPI (inflation) in a divergence/opposite movement.
3. We can use the inflaton from the US as a staircase for the movement in the S&P500 (on this moment a consolidating market)
Sources: Bloomberg Markets, ING Technical Analyses
NOTE: I don't make any predictions, making decisions based on my reports is at you'r own risk!
