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Stock Quotes: How to Read — and Use — Them

Stock Quotes: How to Read — and Use — Them

axp_-1643-083-532-_-american-express-co-yahoo-finance

    Reading a stock quote can seem like an exercise in black magic: even if you have a good idea of what the many numbers associated with trading a stock mean, making use of them can be harder. Even seasoned traders have to stop and think about what certain combinations of numbers can mean, especially if they’re trying to decide which way a stock is going to go in the future. My trading is limited to a handful of investments right now, but I’ve created a cheat sheet for understanding what the various parts of a stock quote mean — and how they fit together.

    The Layout

    Stock quotes follow a similar format whether you’re using Yahoo! Finance (where the above stock quote came from) or you’ve gone old-school and picked up the morning paper: certain pieces of information are always included. At the top of the quote is the name of the company being traded — in this case, American Express — as well as the stock’s ticker symbol. Here, the ticker symbol reads “NYSE: AXP,” indicating that the stock, AXP, is traded on the New York Stock Exchange. There are quite a few stock exchanges that a stock could be traded on: major cities like Tokyo and London have their own exchanges, as do certain countries, like Australia and Switzerland. Wikipedia has a list of the major stock exchanges, along with in-depth information about each one.

    The numbers making up a stock quote are divided into two columns: the left-hand column focuses more on the basic facts while the right hand side reflects a little more analysis.

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    Last Trade

    Whenever you want to know the current price of a stock, you want to know the last trade. This number reflects the last price that a single share of this particular stock sold at. It can change in an instant: it’s set by buyers and sellers trading the stock for whatever they think it’s worth right now.

    Trade Time

    Knowing the last trade price may not be so useful if that price is actually out of date. The trade time tells you whether you should really rely on that last trade price — it’s the time that last trade took place — or if you should go out and get an update. It’s common for a trade time to lag a few minutes behind your actual time, especially online.

    Change

    Change just indicates the difference between what the last trade price is and what the price before that was. I don’t find this a particularly useful indicator of a stock’s performance, as it only tells you what a stock did in the last two minutes and ignores the entire history of the company beyond that.

    Prev. Close

    Another limited indicator of a stock’s performance, the previous close is the price that the last share of stock sold yesterday (or the last day of trading) sold at. It’s only one sale in a 24-hour period, limiting how big of a picture it can provide you.

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    Open

    The open is the price of the first share of stock sold today.

    Bid & Ask

    It’s common to see both the bid and ask sections of a stock quote blank, or listed as ‘N/A’. A bid is the highest price that a principle brokerage firm has announced it’s willing to pay for a share of a specific stock at a specific time. The ask is the opposite: it’s the lowest price that a firm has said it’s willing to sell a particular stock at.

    1y Target Est

    The one-year target estimate is an analyst’s projection of what the price for a single share of this stock one year from today. But because of all the variables in the market, these projections can vary extremely between analysts. I wouldn’t bet the house on a one-year target estimate.

    Day’s Range

    Starting the right-hand side of the stock quote is the day’s range. Rather than relying on a single share to give you an idea of what a stock is doing now, the day’s range gives you the range that a stock’s price has varied by over the course of the day.

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    52wk Range

    The 52 week range is practically the same as the day’s range: it’s just the range of prices a stock has sold for over the course of the last year. In a volatile market like we’re in now, the day’s range can actually offer better information than the 52 week range because drops and rallies can make it harder to tell what a realistic range for a given stock looks like.

    Volume

    A stock’s volume reflects the total number of shares of that stock that have been traded throughout a single day. If a stock is particularly active, it’s worth checking into why: bad news could have lead investors to unload a particular stock, while good news could send every investor looking for a few shares.

    Avg Vol (3m)

    The average volume over the past three months of a stock is often fairly similar to the stock’s volume over the past day. Knowing the average volume can help you decide when the daily volume is active enough to warrant notice.

    Market Cap

    Market capitalization estimates the total dollar value of the company who’s stock is being traded. It’s determined by multiplying the total number of shares by the last trade.

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    P/E

    Edited: The price to earnings ratio reflects the relationship between the price per share and the income earned per share by the company in which the shares are held. A higher P/E points to a more expensive stock, relatively speaking, because an investor pays more per unit of income.

    EPS

    Earnings per share is the amount of money that you would have earned if you purchased a share of this stock last quarter and sold it today. Right now, many stocks’ EPS are looking grim: it’s a useful indicator of how a stock will do if you plan to sell it in the short term, but if you’re planning to hold it long-term, the EPS is less of a concern.

    Div & Yield

    If you’re looking to turn a profit on stocks, the dividend and yield are probably the first places you look. The dividend is the payment the company pays to shareholders based on its profits. The yield is the dividend expressed as a percentage of the price per share. And while a high dividend is good, an extremely high yield definitely isn’t: extremely high yields can point to a company in some financial trouble.

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    Last Updated on February 13, 2020

    What Is Speed Reading and How to Successfully Learn It

    What Is Speed Reading and How to Successfully Learn It

    Too much to read, too little time! Don’t you wish you could read faster without compromising your knowledge intake? This is where a valuable learning technique comes to the rescue: speed reading.

    Speed reading is the top skill to learn in 2020. Read on to find out all about this amazing technique!

    What Is Speed Reading?

    On average, an adult can read somewhere between 200 to 300 words per minute. With speed reading, you can read around 1500 words per minute.[1] Yes, that sounds impossible, but it is true.

    In order to understand how this skill works, you first need to know how the reading process works inside a human’s brain.

    The Reading Process

    The first step is for the eyes to look at a word. This “fixation” on every word takes around 0.25 seconds.

    Next, the eye moves on to the following word. It takes 0.1 seconds for the brain to move from one word to the next. This is called “saccade.”

    Usually, a person reads 4 to 5 words or a sentence at once. After all the fixations and saccades, the brain goes over the entire phrase again in order to process the meaning. This takes around half a second.

    All in all, this allows the average person to read 200 to 300 words in a minute.

    Speeding up the Process

    The concept of speed reading is to speed up this process at least 5 times. Since the saccade period cannot be shortened any further, speed reading emphasizes quicker fixations.

    To accomplish this, scientists recommend that the reader skips the subvocalization: when the readers actually say the word in their mind, even when reading silently.

    Basically, speed reading is the technique of only seeing the words instead of speaking them silently.

    Do not confuse this with skimming. When a reader skims through a text, they skip the parts that their brain considers to be unnecessary.

    You may skip important information in this process. Moreover, skimming does not allow the brain to retain what has been read.

    Why Speed Read?

    Speed reading is not just quick, but also effective. This skill saves a lot of of time without sacrificing information.

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    Also, it has been proven to improve memory. The brain’s performance improves during speed reading, which allows the reader to remember more information than before.

    Since speed reading stabilizes the brain, the information is processed faster and more efficiently.

    Believe it or not, this technique leads to improved focus, too. As the brain receives a lot of information during speed reading, there is far less chance of distraction. The brain focuses solely on the job at hand.

    Since the brain is, after all, a muscle, the process of speed reading acts as an exercise. Just like the rest of your muscles, your brain needs exercise to grow stronger, too.

    A focused brain means improved logical thinking. As your brain gets used to receiving and organizing so much information so quickly, your thinking process will become faster.

    As soon as a problem is thrown at you, your brain will quickly put two and two together. You will be able to retrieve stored information, figure out correlations, and come up with new solutions, all within seconds!

    Still not convinced? Read 10 Reasons Why You Should Learn Speed Reading

    Greater Benefits

    With a healthier brain, you can expect better things in other parts of your life, too. A boost in self-esteem is just one of them.

    As you begin to understand information at a faster pace, you will also begin to figure out more opportunities all around you.

    With the ability to deeply understand information in a shorter period of time, your confidence levels will quickly grow higher.

    Moreover, all the aforementioned benefits will relieve you of stress. You will manage your readings in lesser time, your brain will be healthier, and you will feel so much better about yourself.

    With all these advantages, your emotional well-being will be healthier than ever. You’ll feel less stress since your brain will learn to tackle problems efficiently. Speed reading will lead to a relaxed, tension-free lifestyle!

    How to Learn to Speed Read

    Speed reading is a superpower. Fortunately, unlike other superpowers, this one can be learned!

    There are different techniques that can be used to master this skill. Opt for the one that best suits your learning style.

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    1. The Pointer Method

    The person who is credited for popularizing speed reading, Evelyn Wood, came up with the pointer method. It is a simple technique in which the reader uses their index finger to slide across the text that they’re reading.

    As the finger moves, the brain coherently moves along with it. It is an effective technique to keep the eyes focused where the finger goes without causing any distraction.

    Readers have a tendency to back-skip. The pointer method prevents this from happening, thereby saving at least half the reading time.

    2. The Scanning Method

    In this technique, the reader’s eyes move along one part of the page only. This can be the left or right side of the text but is usually the center since that is the most convenient.

    Instead of pacing through the entire text from left to right, the vision shifts from top to bottom.

    This method involves fixation on keywords such as names, figures, or other specific terms. By doing so, the saccade time is minimized.

    3. Perceptual Expansion

    Generally, a reader focuses on one word at a time. This technique, on the other hand, encourages the brain to read a chunk of words together. In doing so, this method increases the reader’s peripheral vision.

    Here’s the thing: even though the fixation time remains the same with perceptual expansion, the number of words that the eyes fixate on increases.

    So basically, the brain receives 5 times more information within the same amount of time.

    This technique is the hardest to master and takes the most time to learn. You’ll need help from speed reading tools in order to practice the perceptual expansion method.

    However, once you master it, this technique will offer you the fastest reading pace with the maximum knowledge intake.

    The Best Speed Reading Apps

    The easiest tool to aid any process in any part of life these days is your smartphone.

    You can use mobile applications to learn speed reading on the go. It has been proven that regularly practicing speed reading is the fastest way to learn this skill. [2]

    Here are a few great options to look into:

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    1. Reedy

    If you own an Android smartphone, you can download Reedy to your mobile. Otherwise, get the chrome extension on your laptop to enjoy speed reading with Reedy.

    This app trains readers to read faster by displaying words one by one on the screen. Instead of having to go through lines or long texts, Reedy prepares the user to focus on one word at a time.

    Although this isn’t an effective method to learn speed reading long texts, it is a great way to start.

    Once your brain gets used to the idea, you can shift to another app to train speed reading sentences or longer texts.

    2. ReadMe!

    Whether you’re an android or iOS user, you can take advantage of the ReadMe! application. This app even comes with some e-book options to practice speed reading on.

    Start by choosing your desired font size, color, layout, etc. Other than that, there are different reading modes for the user to choose from.

    If you want to practice reading sentence by sentence or in short paragraphs, you can choose the focused reading mode.

    The beeline reader mode changes the color of the text to guide the eye to read from the beginning to the end at a certain pace.

    Lastly, there is the spritz mode in which the app focuses on chunks of words at once. This controls the reader’s peripheral vision. However, this mode is not fully available in the free version of the app.

    3. Spreeder

    Spreeder is available on both iOS and Android. However, users may also gain benefits from Spreeder’s website. This application lets the reader paste in any text that they would like to speed read.

    Starting off at a rather low speed, the app flashes words one by one. Gradually, as the user becomes more comfortable, the speed increases.

    Slowly, the user is trained to speed read without having to skip any words.

    This app is different from the rest because it tracks the user’s reading improvements, recording the overall reading time and speed.

    The progress and improvement are tracked in order to motivate the user to perform even better.

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    Adjustable settings, such as the speed of the text, background color, etc. are in the control of the user.

    The Controversy Surrounding Speed Reading

    Truthfully, speed reading does sound too good to be true. It’s hard to believe that it is humanly possible to attain such a fast pace in reading without compromising the quality of information you receive.

    Perhaps as a result, there are people who do not trust the process of speed reading. They believe that when you read through a text at such a high speed, you cannot comprehend the information successfully.

    According to these people, your brain is unable to process information at the speed that you’re reading, and so, they regard speed reading as problematic.

    It is true that speed reading will be of no use if you do not understand the text you’re reading, no matter how quickly you did it.

    Similarly, if you were to read slowly and still not retain or understand the information you read, that would be useless, too.

    However, there a few factors to consider here. When reading at a normal pace, there is enough time in between every step of the process for the brain to get distracted.

    Conversely, speed reading leaves behind no time for the brain to focus on something else. It is unlike skimming. No part of the text is skipped, which means that the brain receives every single bit of information.

    Conclusion

    Keeping all of this in mind, speed reading cannot be labeled a hoax or a failure. Science has backed up this technique, and numerous readers have been using this skill to improve their learning ability.

    At the end of the day, it is your decision whether or not you want to trust this process.

    However, if you decide to take advantage of the opportunities speed reading provides, you will find a world of possibilities opening up to you.

    We live in a fast-paced world. Consuming information faster will help you keep up with that pace and find further success.

    Speed Read Like a Pro!

    Featured photo credit: Blaz Photo via unsplash.com

    Reference

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