Not Knowing How to Read THIS Is a Huge Blind Spot - The different types of stock quotes you should know about…
- Learning how to read this is easy, but understanding each variable takes time…
- One of the first pieces of information you’ll get with market quotes…
Recommended Link Dear Penny Stock Millionaire, I’ll cut right to the chase here ... When you have access to real-time stock quotes, you can potentially improve your chances of profitability. And not knowing how to read stock quotes is a huge blind spot that can potentially stunt your growth as a trader. Any questions? Good. Let’s move on … From pre-market trading quotes to adding stocks to your watchlist, I’ll walk you through this topic and help you better understand how it figures into your trading strategy. I’ve been reading stock quotes for decades now, but I still get surprised when a company’s stock moves differently from what the stock quote leads me to predict. That instability makes trading more fun. If you don’t know how to read a stock quote, this primer will help prepare you. I’ll explain how to read a stock quote and how to incorporate quotes into your trading strategy. What are Stock Quotes? A stock quote is a group of information about a specific stock’s current activity. It tells you the bid and ask prices as well as the trading volume. Let’s break that down for a sec. The bid price is the amount of money someone on a stock exchange is willing to pay per share of a given stock. Ask price refers to what a shareholder is willing to sell for, and the trading volume tells you how many shares are in play during market hours. Stock quotes also usually tell you how much someone paid the last time shares of the stock changed hands. That’s useful information when you’re not sure about the spread, which is the difference between the bid and ask prices. To make things even more interesting, there are different types of stock quotes. Recommended Link Start with $100 and Retire Rich? Over the past decade, Tim Sykes' stock trading teachings have helped followers of his blog with their financial goals... And in rare cases, some have even become millionaires... WITHOUT starting with much at all. That's why Tim is now offering this full book AND a year of access to his stock trading wisdom... for only $20. Yes only $20... because Tim knows that every $100 you keep could turn into $500 or even $1,000 down the road... If you read this book and take the right steps. | | Types of Stock Quotes There are different types of stock quotes because there are different types of traders. If you’re reading this, you’re likely a retail trader. You have an investment account through an online brokerage firm, and you execute trades through it. When you’re a beginner, you likely concentrate on the most basic information. As you get more experienced, you might decide that you’re a day trader, swing trader, or long-term investor. You need access to more information so you can profit more handsomely from every order. Then you have the market makers. These are major financial firms that essentially fund the stock market. They’re responsible for the stock market’s liquidity. Each of these three types of traders and investors uses different types of stock quotes. There are three levels, but I’m only going to focus on the first two today. Level III stock quotes are only available to market makers. Level 1 Stock Quotes Level 1 stock quotes give you the most basic information. Amateur and newbie investors often start with these. You get the bid/ask prices in real time as well as the last-traded price. You don’t get to see what the market makers are doing or execute orders. Active traders need more than this, which is why Level 2 quotes exist. Level 2 Stock Quotes Access to Level 2 stock quotes is what you need if you want to be an active trader. In addition to the information provided at Level 1, you also get to see market makers’ order sizes, limit orders, stocks that have been shorted and in what quantity, and more. It’s the trader’s playbook. Recommended Link $1,250 Silver Coin Giveaway for Legal U.S. Residents Only (New winner to be drawn soon.) Please be advised that only lawful U.S. residents may enter this drawing for $1,250 in U.S. legal tender American Silver Eagle coinage (50 1-oz coins!). Absolutely no illegal aliens or non-residents may enter this giveaway for uncirculated pure silver coins issued by the U.S. Mint; no exceptions, strictly enforced. If you are a lawful U.S. resident, participate in the drawing by simply entering email here; winners will be notified by email. Click here to see names of recent winners and enter for your own chance to win. | | How To Read a Stock Quote Stock quotes might look different depending on what electronic trading platform you’re using, but if you’re getting Level 2 quotes, you’ll see the same information. Don’t worry about the order or format in which it’s presented. Learning how to read a stock quote is easy, but understanding how to interpret each variable takes practice. If you’re curious about the process I use to find great penny stocks to trade, check out this video I made a few months ago. It’s full of actionable information. Let’s check out the different parts of a stock quote so you can get the hang of reading them correctly. 52-week High and Low One of the first pieces of information you’ll get with market quotes is the 52-week high and 52-week low. Just like it sounds, this information tells you the lowest and highest price per share of a given stock over the previous year. The data used for this information usually includes stock prices two days previously and for the 52 weeks before it. You’ll get a broad understanding of how the stock performs, its volatility, and it’s average price. Company Name & Type of Stock This can get a little confusing, but you really only need to pay attention to the company name. In fact, you don’t even need that if you have the ticker symbol and know what it means, which I’ll get into below. What does the company name have to do with reading stock quotes? It allows you to research that company and learn about any news that has surfaced recently. News catalysts can cause massive shifts in price movement. Ticker Symbol You’ve likely heard the term “ticker symbol.” It’s the way in which the stock market tracks specific shares of a company’s stock. In many cases, it’s a shortened form of the company name. For instance, Costco is COST, Walmart is WMT, and Cinemark is CMK. Ticker symbols are sometimes referred to as stock symbols, but that term is less common. If you’re trading major companies, for instance, you might buy 100 shares of AAPL. That means you’ve bought 100 shares of stock in Apple. Dividend Per Share Some companies pay dividends to shareholders every quarter. These payments are used to help prevent stock market fraud and to reward shareholders for their continued investments. You’ll see the dividend per share if the company pays dividends. Dividend Yield When you see the term “yield” in finance, the source is typically talking about the amount of money or other assets you collect over a given time period. Dividend yield represents your annual yield per share from a given stock And that’s just the tip of the iceberg… there are more components I want to go over with you tomorrow. I’ll also go over how to use stock quotes as part of your investment strategy. Because, let’s be real, what good is all of this to you if you can’t actually put it into practice? Talk to you tomorrow, Tim Sykes Editor, Penny Stock Millionaires P.S. Grab a piece of paper and pen to write this down… Because you’re about to see the name and ticker symbol of one of the ONLY 5G stocks Trump personally ever owned. We found it inside this official 2016 financial disclosure document President Trump had to sell his stocks when he became president. But you can get the name and ticker of this company right here, no strings attached. You better act fast… That’s because the Federal Communications Commission, the government agency in charge of 5G, just scheduled a major announcement for September 30th. It could light a fire under certain 5G stocks. After that, it may be too late for anyone to grab truly life changing profits. Click here to see all the details. |
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