The NASDAQ Basics
Anyone interested in stocks will definitely want to learn about NASDAQ (National Association Of Securities Dealers And Automated Quotations).
Within this association the stocks being traded in the stock market are sent to the dealers in an automated manner.
This enables dealers to use real time quotes to make buying and or selling decisions.
This type of trading is done online, which means there is no physical trading done on the exchange floor.
No other exchange handles as many trades on a daily basis.
NASDAQ has more technology and technology related stocks than other exchanges.
This makes it a popular choice for many investors.
When learning about NASDAQ it is important to note the indicators called NASDAQ 100 pre-market indicator and NASDAQ 100 after-hours indicator.
The 100 pre-market indicator is calculated using the last trading prices of the security in the time between 8am and 9:30am EST.
The after-hours indicator refers to those trades between the hours of 4pm and 6:30 pm EST.
While the indicators are not especially helpful to beginners, seasoned and professional traders and investors are able to utilize the information and make inferences about various stocks.
Regardless of what exchange one is dealing with, it is important to analyze stocks before making trades.
However, many newcomers fall into the trap of analysis paralysis.
Nowadays extensive information is readily available on every publicly traded stock.
This can be a good or a bad thing depending on how the information is used and perceived.
For example, it is easy to get lost in the details.
There are 12 easy steps that can be used in analyzing stocks, which are often referred to as the NASDAQ Dozen.
The concept is based on the fact that all stocks have both good and bad qualities - the goal of an investor is to find and invest in ones with more good qualities than bad.
Below you will find a list of the 12 factors that should be considered: Revenue Earnings per Share (EPS) Return on Equity (ROE) Recommendations Earnings Surprises Forecast Earnings Growth PEG Ratio Industry Earnings Days to Cover Insider Trading Weighted Alpha As each factor is considered the stock should receive either a passing or a failing grade.
Obviously, the goal is to find stocks that have a high ratio of passing grades rather than a substantial amount of failing grades.
There is an easy to use program offered at the NASDAQ site, which can prove helpful in the analysis of these factors.
To begin, one would simply enter the ticker symbol of the stock and take a look at the Revenue.
This is the basic consideration of stocks because in simple terms, if a company isn't profiting it cannot pass along profits to its shareholders.
Each of the 12 factors will carry some weight in determining which stocks are wise investments.
The use of NAASDAQ Dozen is a great way to get started on the road to becoming a trading expert.
Within this association the stocks being traded in the stock market are sent to the dealers in an automated manner.
This enables dealers to use real time quotes to make buying and or selling decisions.
This type of trading is done online, which means there is no physical trading done on the exchange floor.
No other exchange handles as many trades on a daily basis.
NASDAQ has more technology and technology related stocks than other exchanges.
This makes it a popular choice for many investors.
When learning about NASDAQ it is important to note the indicators called NASDAQ 100 pre-market indicator and NASDAQ 100 after-hours indicator.
The 100 pre-market indicator is calculated using the last trading prices of the security in the time between 8am and 9:30am EST.
The after-hours indicator refers to those trades between the hours of 4pm and 6:30 pm EST.
While the indicators are not especially helpful to beginners, seasoned and professional traders and investors are able to utilize the information and make inferences about various stocks.
Regardless of what exchange one is dealing with, it is important to analyze stocks before making trades.
However, many newcomers fall into the trap of analysis paralysis.
Nowadays extensive information is readily available on every publicly traded stock.
This can be a good or a bad thing depending on how the information is used and perceived.
For example, it is easy to get lost in the details.
There are 12 easy steps that can be used in analyzing stocks, which are often referred to as the NASDAQ Dozen.
The concept is based on the fact that all stocks have both good and bad qualities - the goal of an investor is to find and invest in ones with more good qualities than bad.
Below you will find a list of the 12 factors that should be considered: Revenue Earnings per Share (EPS) Return on Equity (ROE) Recommendations Earnings Surprises Forecast Earnings Growth PEG Ratio Industry Earnings Days to Cover Insider Trading Weighted Alpha As each factor is considered the stock should receive either a passing or a failing grade.
Obviously, the goal is to find stocks that have a high ratio of passing grades rather than a substantial amount of failing grades.
There is an easy to use program offered at the NASDAQ site, which can prove helpful in the analysis of these factors.
To begin, one would simply enter the ticker symbol of the stock and take a look at the Revenue.
This is the basic consideration of stocks because in simple terms, if a company isn't profiting it cannot pass along profits to its shareholders.
Each of the 12 factors will carry some weight in determining which stocks are wise investments.
The use of NAASDAQ Dozen is a great way to get started on the road to becoming a trading expert.
