facebook1) Why does it matter what the open/high/low price of a stock is? 2) How should we view p/e ratios? Higher ratio = we should invest? 3) Any good resources on how to read stock charts? - Seedly

Anonymous

24 Jun 2021

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1) Why does it matter what the open/high/low price of a stock is? 2) How should we view p/e ratios? Higher ratio = we should invest? 3) Any good resources on how to read stock charts?

I'm learning how to read stock charts on Goggle website. Not sure how to make sense of the data, and which indicators are important to look at.

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CommonSense Investor

24 Jun 2021

Certified Professional at Biotechnology and Gene Therapy Industry

Treat Stocks as Business Ownership. Assess it like how you would if you wanna buy a Hawker Store Business from Old Airport Rd Hawker Centre (Fundamental Analysis)

Does the stall sell out earlier than others?

Does it have repeated customers?

Will people keep eating this for next decade?

Is rent getting expensive?

Is ingredient supply stable?

Stock chards? Its like buying a store if its a saturday and if it rained on that day?

Heck you might as well read tea leaves.

You should never use P/E alone to identify which stock to invest. P/E (Price / Earning Per Share) indicates whether the stock is expensive or cheap in relative to its earning. Would you invest in an unknown company if a stranger comes and tells you that his company is "cheap"? There is a lot of reason why the PE is low and vice versa. The fundamental of investing is try to understand the business instead, you should never buy a company stock that you do not have confidence in their success in the future.

  1. Open and closing price can give us a sensing of market direction, either bullish or bearish.

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