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π± Stock trading: issuer reporting as a market factorβ
π If you intend to work with shares of a separate company or group of companies, combined in one trading asset, you need to analyze the regular financial statements of the issuer. It is not in vain that the season of corporate reports is considered the most active trading period on Wall Street.
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The publication calendar is usually listed on the official website of the company, as well as on publicly available reference resources. As a rule, a minimum amount of information is available free of charge, detailed reports can be provided with a paid subscription.
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You need to study the financial indicators of the company: profit, dividends, stock returns, capitalization, technology, quality of corporate governance, respect for the rights of shareholders and the company's business reputation. If the numbers in the company's report exceed investors' expectations, the share price will rise, if the company does not meet expectations, the price will fall. If a trading asset is used for a group of companies, you will have to study the master data of all reports separately.
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We pay special attention to corporate information on the current composition of investors or other participants, although such data may not appear in the minimum report. In this case, this information should be sought in other, for example, paid sources, since the actions of large participants should be analyzed separately - they can be very dangerous with their "manual" manipulations.
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Short-term reactions to financial statements or other corporate changes are always stronger than technical factors - and you must be prepared for this. In the next post, we'll talk about news that affects stock prices - who creates it and how to use it.
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Profits to y'all!