Stock Market Fundamentals | Zac Hartley | Skillshare
Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
67 Lessons (9h 48m) View My Notes
    • 1. Course Intro

      0:53
    • 2. History of the Stock Market

      3:24
    • 3. What are Stocks and Bonds?

      9:17
    • 4. What is an Index?

      6:44
    • 5. How the stock market works

      11:05
    • 6. Types of Analysis

      7:52
    • 7. Price is King!

      8:35
    • 8. Trend Lines

      11:35
    • 9. Patterns

      7:12
    • 10. Volume

      8:45
    • 11. Moving Averages

      8:36
    • 12. MACD

      12:10
    • 13. RSI

      4:25
    • 14. Using Indicators

      6:36
    • 15. Strategy

      9:49
    • 16. Stop Loss

      5:55
    • 17. Options

      14:59
    • 18. Setting up the charts

      10:00
    • 19. Making the trade

      10:26
    • 20. ETF's and Mutual Funds

      4:07
    • 21. Execution

      16:06
    • 22. Buying ETF's and Index Funds

      6:46
    • 23. Chart Lists and Routine

      12:21
    • 24. Day Trading basics

      7:45
    • 25. How Margin Works

      10:03
    • 26. Setting Up the Dashboard

      16:46
    • 27. Trading Journal

      6:41
    • 28. Hot Keys

      7:18
    • 29. Day Trading Order Types

      8:20
    • 30. Order Duration

      5:17
    • 31. Setting up indicators

      6:11
    • 32. Uber Trade

      8:21
    • 33. 1 page trading strategy

      10:17
    • 34. Position sizing and diversification

      11:33
    • 35. How I set my stop loss

      13:08
    • 36. Pre and Post market Trading

      5:34
    • 37. Technical Summary

      11:17
    • 38. 5 thing I wish I knew

      6:35
    • 39. Intro to Fundamental Analysis

      7:02
    • 40. Finding the Financials

      10:59
    • 41. Reading Financial Statements

      15:06
    • 42. What are Ratios?

      10:35
    • 43. Comparing Companies Using Ratios

      9:46
    • 44. Market Cap and Share Price

      8:38
    • 45. How Dividends work

      6:14
    • 46. Dividend Investing

      12:14
    • 47. Importance of Diversification

      13:57
    • 48. Real Estate and REIT's

      12:31
    • 49. Short Selling

      5:47
    • 50. Practice Accounts

      4:49
    • 51. Starting Your Portfolio

      13:35
    • 52. Managing a portfolio

      8:36
    • 53. How to handle down days

      6:25
    • 54. FOMO

      4:26
    • 55. What is an IPO?

      15:00
    • 56. Averaging Down

      9:25
    • 57. Course Summary

      9:09
    • 58. The Most Important Lesson

      9:55
    • 59. Stocks to watch during Covid-19

      11:46
    • 60. Buying FB and LULU

      8:14
    • 61. Buying Shopify Options

      4:40
    • 62. 42% Profit on Beyond Meat

      6:10
    • 63. Taking Profit- LULU

      3:06
    • 64. How to use the VIX

      5:28
    • 65. 73% Profit Trade

      5:54
    • 66. Buying into an IPO

      6:44
    • 67. My Long Term Stocks

      9:11
502 students are watching this class

About This Class

Hi Everyone!

My name is Zac Hartley and in this course I am going to teach you everything you need to know in order to feel confident making your first investments in the stock market. 

In lesson 21 I am going to make a trade using the methods that I have taught in the course and in lesson 34 I close that trade with a 44% profit in under 10 days of trading using just the knowledge and strategies that I outline in this course

This is the perfect course for somebody interested in getting into day trading, swing trading or dividend investing and we are going to cover all of the fundamentals to get you started.

We are going to start at the beginning and talk about how the stock market was founded, what a stock is, and the history of the stock market.

After we get through the easy stuff we are going to start looking at how to read charts, make decisions, and actually invest our money in a way that helps us achieve our time based financial goals.

We are going to finish the course by looking at fundamental investing and understanding the financials statements so that you have a full range and understanding when it comes to looking at a company stock.

I started trading 7 years ago and I began making courses in 2019.  Since then I have helped over 200 students learn how the stock market works and helped them take that first step in their plan to financial freedom.

Join my trading group chat and get access to my weekly analysis, trading journal, investment spreadsheet and much more: www.zachartley.com

You can reach out to me for questions and feedback at anytime by e-mailing me at [email protected]

Best regards,

Zac Hartley

Transcripts

1. Course Intro: welcome to stock market fundamentals. Mining is Zachary Hartley, and in this course I'm going to teach you everything you need to know about the stock market, starting with the history of the market, what a stock is and how they trade and finishing with how to find the right companies and build a diversified portfolio to set yourself up for success. We're going to help you set goals, find strategies and methods to meet those goals and knocked them out of the park. And in this course, you're gonna have everything you need to feel confident, making your first trade, taking control of your own financial freedom and setting yourself up for long term financial success. My name is Zak Harley, and I've been day trading and swing trading in the stock market for the last seven years, and my goal here is to share as much knowledge as I possibly can with you. Welcome to stock market fundamentals. 2. History of the Stock Market: What's up, everybody? Zack here again, And today we're talking about the history of the stock market. So I'm really excited about this. There's one of my favorite subjects. Cut is a kind of It's a cool story, and it tells you about how it started and how we got to where we are today. So let's get into it. The history of the stock market is kind of cool. It actually started with ships, and it started in Amsterdam in 16 02 Back then, merchants were trying to send ships overseas to trade for goods and products and bring them back into Europe and sell them to make money. Now, what was kind of tricky about this business model back in the day is about 25% of the ships never made it back. So for a merchant to save up all of his money, send out a ship to go and do this and possibly not have it come back was a big risk. So what they did instead was instead of sending a one ship that send out five ships, but that cost much more money so they will go out and they would raise money from the general population and from businesses, and in return for or for that up front money they would issue shares. Those shares looked like this. So this share here was issued by the Dutch East India company. This was the 1st 1 that's actually ever being recorded in the oldest one. We confined, and this was a share for anybody that invested to get a return of the profit from that ship . Now this was a great system, and it really helped them expand and grow the amount of ships that they could send and receive. Eventually, more and more businesses began to do this, and soon it was common practice to raise money through issuing shares to start your business. This eventually led to lots of companies having shares and trading the shares, and it grew across Europe. So much so that in London there was a coffeehouse where people would meet every single week to trade their shares in exchange and meet up and talk about it. And after a couple of years, the traders that went there every week actually took over that coffeehouse and established it as the world's first stock exchange. That was in 17 73. Fast forward a couple of years, and this premise or this idea had expanded across the globe. In New York, they started Wall Street and the New York Stock Exchange, which was located on Wall Street. And that was in 17 92. That was the first organic kind of stock trade market on on North American soil. So since then, there's also been a lot of different markets opening around the world, and those include the NASDAQ, which is an electronic exchange. Also based in New York. It's actually the second largest exchange in the world. Excuse me. There's also the Toronto Stock Exchange for Canadian companies in North America. There's the Japanese Stock Exchange, the Shanghai Stock Exchange, in the Hong Kong Stock Exchange. All in Europe, you have the Euronext and London Stock Exchange in Europe. Now the advantage here is that you now have stock exchanges on multiple continents around the globe, which allow you to trade almost 24 7 So if you're up in the middle of the night and you want to make a trade, you can do it. On the Asian stock exchanges Monday to Friday. Now it's great because it allows global markets to interact with each other, and it also gives you liquidity and accessibility to the markets, depending on where you are in the world. So it's pretty cool. We started with one single ship. We expanded that premise into multiple businesses and that and then opened a stock exchange at a coffee house in London and that expanded into what we now know as a different exchanges around the world. So pretty cool story. That was the quick version of 300 years. But I'm really a fan of it, and I hope you enjoyed it so onto the next lesson and we'll see you there. 3. What are Stocks and Bonds?: all right with up y'all that Zack here today. We're talking about stocks and bonds. What they are, what you can do with them and how they work. So let's get into it right away here, So stocks is pretty exciting. Another word for them is equity shares per senator ownership. Tell me in the exact same thing, usually in different contexts. But what they are is a means that you own or this stock represents part of a company. It means that if there's 100 shares and you own five, whom you on 5% of the ownership of the shares of the equity in that company you own 5% of that company. And now with that, you get a couple of things. So this is what Apple Computer stock looked like back in the day. This was the original one. This is the paper copy one. You can still get paper copies usually get them. When you incorporate your business, you get a copy of what the paper copy of the stock actually looks like. But nowadays everything's electron ICS. When you buy and sell shares to your banker through training platform, you're not getting any paper copies like this, you're literally just doing everything electronically. This is what the share actually looks like. But everything now when your trading and I'm going through the process is Elektronik. When you do share transfers and actually incorporated business, that's what they look like. And they do keep a document of this still. So what can you do with a stock? Well, there's a couple of different things. Since you own X percent of the company, you are entitled toe X percent of the profits or of the dividend. So if you own 5% you get 5%. That's sort of how it works. So in the corporate world, all of the profits air called your net earnings or retained earnings, and a company can decide now on Lee if they want to. They can issue a dividend that dividend as part of the profits that were generated from that company, usually in the quarter, and that dividend is a chunk of money that then gets paid back to the shareholders. You'll get five cents or $1 or $2 for every share that you own, and that's how your pay out of the profits is determined. Usually they're done in quarterly dividend. Some oil and gas companies do it monthly, but usually it's accordingly thing, and that dividend is an option of the company. They do not have to do that now. Where you see the difference is if it's a large blue chip company or it's a large oil and gas producing company, they'll usually pay a consistent dividend because that's what their investors are looking for. But if it's a small young startup, if it's uber or Apple back in the day or any of these young up and coming cos they're never gonna pay a dividend because they decide to put that money back into the company. So when you're looking at this, you really need to be aware of what you're getting with these companies. And when you buy their stock, what else do you get with a stock? Well, you can vote on certain decisions. So if the company decides to sell emerge, if the company decides to elect a new chairman of the board or new board directors, any type of decision like that, that's not a day to day operation. You actually vote on it. You can also attend the annual shareholders meeting, which is a once a year meeting usually done at the company headquarters, where all the investors from around the world can come in. The most famous one is the Berkshire Hathaway annual general meeting that's run by Warren Buffett, and he actually hosts one day where all the companies come in the exhibit, their products and all of the investors come in to basically here, Warren speak. It's definitely one of the biggest A GM in the world by himself. You could buy and sell your stocks, and you can trade them, hopefully buy them at a lower price, and you sell them at a higher price. And that's definitely one of the options you can do with them now. Another thing that most people don't know is they are considered an asset class. So just like your home is considered an asset. Your cash in the bank is considered an asset, so where your stocks so if you need to borrow money or you need to get a loan for a mortgage, what you can do is you can use these stocks as part of your asset base. That was a good store of money. So if you don't want to sit on cash, you don't want to be subject to inflation. But you want to make a somewhat steady return. You can invest into a diversified portfolio or an index fund. You convert your cash into stocks. It's great way to story and money. So that's the summary of stocks. Next up is gonna be bonds, so a bond is very different than a stock. A stock is ownership in a company, but it bond is pure debt. So if a company needs to go out and let's say you're a ship manufacturer and you need to go out and buy a bunch of inventory for a new type of ship that you want to fund, well, you can do that through issuing bonds. What it is is you issue basically a note that says I owe you $1000 and I'm gonna pay you back $1000 on X Date, and I'm gonna pay you interest in between. So that's what a bond is. A bond is debt and a share or a stock is equity in the company and ownership. Every bond that you buy is gonna have an interest rate. That interest rate is basically what that person or that entity that company in this case is going to pay you to allow you to let them borrow the money and that money is usually board over a certain time period. So let's say it was a $1000 bond over five years at 5%. Well, that 5% is actually considered a coupon, and that bond pays you a coupon rate of 5%. So at the end of each year, you can go in and collect your 5% coupon, and at the end of the bond, you're gonna get all of your money back. So that's the key here with the bun is you're gonna loan them $1000. You get 5% back every single year, and then you're gonna get $1000 back at the end of it. That 5% is what you're using. Eyes what you're gaining to allow that company to bore your money. Bond is not equity, but it can be bought and sold. I got a little spelling air in the in the power point here, but don't mind that what it's saying is, it can be bought and sold it similar to a stock. There are markets for it can be bought or sold, and there is one big difference. You can buy government bonds so their government bonds for one year, two year, three year, five years, 10 years, 20 years, 30 year. And these were generally considered the most safe bombs and generally the most safe assets that you can really invest into. Now they pay you a much lower interest rate, usually between 0.8% and maybe two or 3% depending on the rates at the time. But what's nice is it's a super secure way to do. Do your basically storing your money. You can buy bond that's still gonna pay you an interest rate and the only way that it defaults of the entire US economy crashes. So lots of security there but still completely different than a stock, and you can buy these bonds. Companies can issue them to go out and buy new ships, for instance, or governments can issue them. Teoh put some money into the markets, so a U. S. A. Bond. This is what it looks like. This was actually done by the United States of America. This is a little bit back in the olden days where they still have the coupons actually attached to the bond. So the reason it's called a coupon is because you literally tear it off the bond. All these little blocks here at the bottom are individual coupons that this customer take back into the bank, and they would get a X dollar amount for that coupon. So that's the reason that it's still called a coupon, and the bond is basically that top piece of the top. So when somebody would go in, they give $1000. They'd get this entire sheet back, that taking the coupon every quarter every year to redeem that money. And then at the end they would take back that large bond. And then we get the principal amount back, and that's how bonds work. Basically, all over the world, they all work almost the same way. They do change where the paint mints come in, but that's pretty much the general premise. So just to summarize, how are they different stocks or equity in the company and bonds or company or government debt? They're completely different. There is no time horizon on a stock. You can own it for as long as you live. You can even pass it on to your Children. But there is a set time horizon on a bond. Every bond has a certain period of time, as well as an interest rate in between. That's your coupon rate on stocks is a variable return. You have no idea if that stock's gonna go up or down, or whether or not they're going to continue to pay that dividend. That's right. If a company is currently paying a dividend, that could decide to not pay a dividend at any point. So there's variability, even if they're paying a dividend. A. A bond, on the other hand, has a set time period and given return race, you can pretty much forecast what you're gonna make on it on. The stocks may pay a dividend. They may not, and the bonds that coupon is guaranteed, so it's definitely a lot more secure. There are no government stocks, but you can buy bonds from the government that generally considered the safest type of investments, and they go over long time periods. A stock can also be any price. You've heard the woeful Wall Street talk about penny stocks. You can also buy Berkshire Hathaway, Warren Buffett's company, for about 200 to $300,000 per share right now. So the stock price can be any price basically, in between there and it doesn't really matter what that price is, because it depends more so on how many shares are issued. We'll talk about that a little bit later on in the videos. Bonds, on the other hand, come in multiples of 100 or $1000 they set coupon rate usually between one and 5 to 6%. If you're really lucky s o those, the difference is we're gonna focus primarily on stocks in this course. But you do need to know that bonds air there as basically a slightly safer kind of asset class compared to stocks, they're definitely not quite as exciting, but they are actually bigger market in stocks just because of how much institutional money has gone into them. So that's a summary for stocks and bonds. Next video is about how the stock market actually works and how the price of those stocks are are gathered. So stay with us quick onto the next one will see you soon 4. What is an Index?: What's up, everybody? My name is Zak Hartley, and today we're talking about indexes. Now what is an index and index? Is a group of companies basically what it is. If you're trying to look at the solar industry, for instance, you can look at an index that has 10 or 15 different solar companies in it to give you an idea of what that group is doing, as in general, they usually described in points. So when you look at an index, what it does is it says Okay, here's the 10 companies. Here's what they're worth That means they're worth X amount of points. This is where the index starts, and then it trades from there. Once those companies appreciate or depreciate in value, that's how the S and P 500 works is how the Dow Jones work. And that's how the NASDAQ works as well. So what is an index, or why were they here? While they usually focus on a certain geographic region and they're there to give you a reference of what that region or group of companies is doing as a whole? So what is an index? Well, one example of them is Dow Jones. You've probably seen this on the news. You probably heard of it before, but this is usually the most common one and the one that most people know about. And the Dow Jones is 30 blue chip stocks that are some of the largest and most influential in America. It is the second oldest out there, and it is also one of the most popular these blue chip stocks. What I mean by that is a stock that is not new. That is very large, that is well known, and that is basically an industrial powerhouse in the United States. One that's fairly steady, fairly stable in is done well over the years. Now the Dow Jones is really interesting because it's one of the best reasons to get into the market. The Dow Jones started in the mid 18 eighties at 62.62 point 76 points. It hits 78.38 in 18 96 years later, it felt toe 1/3 of that. Excuse me. It fell all the way down to 28.48 points in 18 96. Now, since then, the Dow Jones has had a phenomenally amazing run. It hit 29,551 points on February 12th of 2020. That was the actual all time high, were trading at about 24 25,000 points right now and the annualized gain, or the annualized return of the Dow Jones over that period of time from inception to today's 9.69%. So what that means is that if you had invested in the Dow Jones you put $100 in, you would have made, on average 9.69% every single year. Now, obviously, some years it went up way more than that in some years that lost money. But on average, over the long time period, you made 9.69%. And that is one of the biggest reasons to get into stocks early. And to start to understand them is because the market and the return that you can get here . If you could make 9.69% on your money every single year, you would do very, very well. You'd be financially stable in a short, short number of years. So this is these are the companies that are in the Dow Jones thes air. The 30 companies, you should be able to recognize a lot of these. You've got apple right here. Johnson. Johnson, You got Walt Disney Coca Cola. So there's a lot of big names in here, and these are the fundamental Dow Jones 30 companies, and this is what the chart looks like right now. So we're doing really well. We had a big kind of drop off here to be getting a march because of Cove it and we're slowly starting to climb back up were 24,242 points today. But as you can see here High was around 29,000 and we started at about 60 points, which is just unbelievable their returns over the long period. So another in next fun that you can look at is the S and P 500. This is 500 of the large companies listed in the United States. This is generally referred to as the best kind of cumulative representative of how the United States is doing. Because you have 500 companies in there, you're very well diversified. You have a broad range of different companies, and you have a lot of different companies in each industry, so it is considered the best representation. It started in 1926 with an annualized return to date of 9.8% so really close to the Dow Jones but 9.8. Instead, it's posted an annual increased 70% of the time. So what that means is seven out of 10 years that this is operating it posted, increase or return or the opening amount is higher or is lower than the closing amount on that year. It made money in that year is what it's saying seven out of 10 times so you can expect if you hold this stock for 10 years, three of those years, you're probably gonna lose money on it, but but with a long term, you're gonna return 9.8%. So the last one I'm gonna look at in kind of depth, here's the TSX Competent Index. This is the Toronto Stock Exchange Composite index. It's basically the same idea, but in Canda it only has 235 companies listed in this index, and it makes up roughly 70% of the market cap on the Toronto Stock Exchange, which has about 1500 companies. So these small to group of 235 make up the majority of the market cap on the Toronto Stock Exchange. So it has a really good broad depth of what the Canadian market looks like because it makes up so much of that Canadian market. It started in 1960 from 1960 to 2018 it had an annualized return of 9.3. So slightly lower than the Dow Jones Industrial and the S and P 500. But still almost in the exact same ballpark is what the TSX looks like right now. So same almost the exact same chart. You can see it doing pretty steady all the way up here. It hits 17,500 points, and then it dropped all the way down to 11,000 here at the beginning of March because of the covert pandemic. Again, we're working up just like we are in the Dow Jones index. So this is the Canadian version of the S and P 500. We don't really have a Canadian version of the Dow Jones but this gives us almost the exact same information in summary indexes or group of companies. They're basically a representation of what that group of companies that industry or that geographic region is doing. It's used to look at larger trends. So when you look at that group of companies or you look at those companies within that country, you can usually get a reference for how that country or industry is doing it. Can those indexes can contain companies from just one country? You can also look at a global index, so you could look at Excuse me, a global index that has countries or companies from countries all over the world. Or you can also focus on just specific industries. You could focus on just solar indexes, just cannabis in back indexes, just energy indexes. There's an index for almost every single industry, and they could be traded through index funds or E. T. F. S. And that's what we're gonna look at it another video. So lots more to come. Please stay tuned 5. How the stock market works: all right. What's up, everybody? Today we're going through how the stock market actually works. What I mean by that is how we the shares traded. And how is the price determined? So, first of all, the first thing we need to talk about is the initial public offering. Now what happens is when you go out and start a company, you can raise money through private means so you can go to your friends family, and you can raise money, go up to investors and raise money. But you need to really raise a large amount of money. 500 $1,000,000,000. The best way to do that is on the public market, so you can have access to everybody around the world through the stock market. And how you do that is you take you your company through an initial public offering, also called an I P O. And, like our slideshow says here, it says it's used to raise money. That's exactly what it is. It's a fundraising metric for a company to raise money through global investors. And then what happens after that is once they go through the i p o their shares air, then traded on a stock exchange. It happens on an exchange like the NASDAQ, the New York Stock Exchange, the Hong Kong Stock Exchange, any of them all do it. Companies issue these shares in return for capital, and the shares have been traded on the exchange exactly Like what? We're gonna be going through trading stocks on the stock market. So all of these trades happen after a company is going through an initial public offering. And when a company goes through the I P O process and the shares can be traded, it means that they're a public company if you can not buy the shares and they have not gone through nine p o means there are private company. And the difference is that AH, public company is open to investors from around the world, and they also have to report their financials and a lot of other metrics on a quarterly basis. So there's a lot of reporting requirements and financial requirements. They call along with being a public company, which is one of the reasons only big companies do it versus private. You don't have to tell anybody anything so you could be a private company don't have to report your financials to anybody. You can basically operate basically in the dark, so it's kind of grateful. The only people you have to worry about the i. R s or the c r A. So this is what the Facebook I feel it looks like when the eye peeled, I field on the NASDAQ and see that logo down in the front there. This is Mark Zuckerberg, the CEO, and he basically goes at the market open on the day that they're gonna aipo and he hits the button for the NASDAQ that says, OK, we're live. This is our I, P o or on the New York Stock Exchange. Isabel. So ringing the opening bell. You've heard that before. That's on the New York Stock Exchange. So the stock price, once a company has gone through their initial public offering and their shares have then traded on a stock exchange, how do you determine the value of those shares over these stock price? Well, the truth is, is that it's completely determined by supply and demand. The market opens at 9 a.m. and it closes at 3:30 p.m. In different areas of the world, and that price can fluctuate between that time. And also after that time, when the market is closed, the prices can also change. The price quote that you see in that we're gonna go through is the last executed trades. So if the price quote is $20 it does not mean that your trade is gonna execute it. $20 means that the last trade happened at $20 years, could execute a $20.1 and five cents whatever the prices at the time now, the big thing here is that we have to start to understand the difference between the types of stock trades. So when you go in to make a stock trader going to buy or sell a stock, we actually doing is placing an order in the market. Now there's two different types of orders the market order and a limit order. A market order means that you're gonna go in and buy and sell, buy or sell your shares at the easiest available transaction price. So the closest transaction price that you can instantly transact with on that stock exchange. So if the stock is $20 you go in with a market order to buy five shares, it is going to basically sell you those shares at the closest price possible to $20 no matter what. Just gonna instantly transact that that basically order that you placed and you're going to get in or out of that position at the market price at the time, usually pretty close to that quoted price. But it might not always be the same. Ah, limit order is a little bit different when you're buying shares and you place a limit order , you're going to say I want to buy 10 shares at $19. So if that share price switches from $20 to 19 then you're trade executes. You can also do it the other way. You can do a cellar where I want to sell my shares at $21 and if the price goes up to $21 and his 21 minute execute your trade so market order will execute your trade instantly at the closest price possible, depending on the last quoted price. And a limit order is placing an order to buy or sell shares at a certain price that is gonna make more sense in the next slide. But this is what the order form actually looks like. So when I buy my shares do RBC Investment Banking Canada here. It's one of the platforms I use. This is the actual screenshot of an order Form off what it looks like. So instead of doing it just kind of walking through here, I'm actually going to show you what it looks like. So we type in Tesla, you test the ink so detailed stock quote right here. Let's see if this comes up. Here we go. So Tesla, 40 or $57.47 dollars USD. It was down 5.63% in the last trade of the day. As of today, April 2nd 2020 was $454.47. Now that price can open up anywhere tomorrow. But this quote here is the last quoted the last executed transaction. That's how they get that price. So now let's say we want to go buy a Tesla stock. It's really simple. It takes us to this page here. We're gonna choose our account. I'm using a practice account for this one just cause it gives me money. So here's that same screen you saw in my power point We're gonna go with buy, buy one share of Tesla. We've got the that take her symbol on their that four digit abbreviation that you see, for every stock is called taker symbol. That's basically what we used to establish that stock. Instead of writing out Tesla Motors, we read out TSL We choose our market, we're gonna go in the U. S. Markets. And then here's what I was talking about. So market price or limit price, there's a couple different things you can do here. So if I go market price, what it's gonna do is it's gonna place in this order. Now it's 8 30 right now PM So if I go market price, what it's gonna do is place in order for the opening price of wherever that stock opens tomorrow. So it was at $454. If it opens at $440 tomorrow, it's gonna execute that trade for me. However, if I go with a market price and I set a limit price, let's say I want to buy this share when it gets to $450 I want to get an at $450. I can place this order and this order will sit in the system until it is executed. So if that stock goes all the way up to 607 100 my order is just going to sit there and nothing's gonna happen to it. And it drops to 4 50 which is the number I put in there than that trade is gonna execute. So that's the big difference here at the market. Price is going to execute. The closest prices came and the limit price is gonna execute at a certain dollar amount. You can also say, if you only want it good for the day or if you want a good through. So that's where you can kind of play with the timeframes there, and then any part or all or none, we're gonna go through that here in a minute. But this is the actual order for for RBC. If you want a place and buy a stock, you if you continue and then you just confirm your but back the slide show. So boom This is the order form that we just went through. Market price and limit price. The next thing is the bid and ask. So this is what's happening in behind the scenes. So let's say that are basically last executed. Price was at $20. Okay, and we have somebody that has a limit order for $10. They want to buy the share at $20 they're willing to buy 10 of them. So that's their order. It was Tesla's 10 shares, $20 limit order, good for however long. That's what the market looks like right now. On the other side of it, we have people that are asking $21 for 10 shares were also people that are asking at $22. They want to show Self five shares $23. They want to sell 10 shares. And so what happens is we have a difference right now. We don't have buyers willing to sell it. 20 and sellers willing to sell a 20. We don't have that right now, So the last quarter prices $20 and the cheapest anybody is willing to sell it out right now is $21 so as of right now, no trades would be executed, however some he puts in a new market order for this, and we have somebody willing to sell at 21 somebody wants to buy right away. If somebody placed a market order, it would close that order at 21 and our new market price would now be 21. If somebody wanted to sell their shares and they put in a market order, the only way they would be to sell their shares is if they sold at $20 they would only be able to sell 10 shares. If they wanted to sell 20 shares, they would have to sell 10 shares at $20.10 shares at $19. Same thing on the other side. So what the market does the New York Stock Exchange? The NASDAQ? They basically hold this system and everybody from around the world can put their orders in . And as soon as two orders match up boom, the trade gets executed, and now you've bought or sold your ships. So market orders always the easiest, quickest, cleanest way to get into the market. Whereas if you pick a limit order and you put a specific number on it. The stock price may or may not execute that order, and that's the real thing here on that you need to monitor. So what's important here is that you understand how this works, because now you can see that's completely influenced by supply and demand. As everybody is trying to sell their shares and trying to sell them at lower and lower prices just to get out, the value of that share is gonna drastically plummet. But if everybody wants to buy into those shares, they're gonna have to spend more and more and more to get into those shares. And that's how the price of a stock goes up and down. All right, So this is the price quote that we saw earlier for Tesla for 53 99 then this is what it also looks like on an iPhone. So same information here for 54. They were taking a different times, but that is the last executed trade on that date. You can also see underneath here. We've got a chart, the shows that basically the action of the price over one month period, that's highlighted there. Underneath you get a little bit of information about the chart itself in some of the financials of the company. So we're gonna go through all of that in a later video. I'm really excited to talk about it, but now you have the basics off. What is the stock? How does it work? How is it priced? And how did the markets actually work? So pretty exciting. Lots more information. Stay tuned for the next videos. 6. Types of Analysis: What's up, everybody? Zack here and today we're talking about stock analysis. Know what I mean by that is how do you figure out which stocks to buy and sell what method of analysis and methodology do you use to decide which stocks to get into or get out of, So let's get right into it. There's two types of analysis you congenitally conduct. The 1st 1 is technical, and the 2nd 1 is fundamental. Technical analysis is using charts to make investment decisions. Now that's my personal definition of it, and that's what I think it is. Google seems to think it's a training discipline employed to evaluate investments and identified trading opportunities by analysing statistical trends gathered from trading activities such as price, movement and volume. All of that information then gets displayed onto a chart, and that's how you make decisions. So I kind of summarized it. But basically what it is is it's taking the price that the stock trades after out a certain time period and overlaying it with the volume of trades during that time period and then extrapolating information from that to gather enough information to make a solid investment choice. Either buy it or don't buy it or sell it. It looks like in practice is taking a chart that looks like this in the middle, you can see the red and white and black dots. That is the price movement over basically a six month time period. The red and black bar chart underneath that is the volume, and then the rest of the information on there is a basically extrapolation of that price movement over time. What technical analysis is is taking all of that information that's in this chart and then deciding when to buy and when to sell? Now there's lots of different patterns and formulas you can use to start to figure that out , and we're going to really deeply explore that in the next couple sections of this course. But the idea here is technical analysis is using a chart like this to make your investment decisions so usually done on a shorter time frame compared to fundamental investing from the metal analysis is using financial statements to make investment decisions. That's the Zach Hartley definition. Again, The Google definition is a method of determining a stocks really fair market value. Fundamental analysis. Search for stock that are currently trading at prices that are higher or lower than their riel value. Now what that means is, all it is is you're trying to go out and your China establish your own value for that stock and then see, with the market prices at at higher or lower and it's higher, you might want a short sod. And if it's lower, you might want to buy it so that you can make some money. So fundamental analysis is the idea of looking at the financial statements. The financial statements include the income statement, balance sheet, statement of cash flows and the conference call. Now, when we're looking at public companies, one of the reporting requirements after their I pose that they have to submit all this information on a quarterly basis, and it's really convenient for us because now we can know exactly how much all these companies make. So if we just go to Google real quick and we type in Tessa investor relations, we can go in and we can see exactly how much money this company made in the last quarter or in the last year or the last three years. It's basically all available since their i p o. And it's one of the basically big reporting requirements and big kind of burdens that a company has once they go public. So quarterly financials Q 4 19 updates So this is their pretty version of it. Basically, here's the highlights and the financial summary So highlights here. Financial summary Boom right here, So financial summary in millions of dollars. Automotive revenues Q. 4 2019 6 billion $368 million. Really cool. We now