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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    Knowing the last trade price may not be so useful if that price is actually out of date.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 July 9, 2019

    How to Stay Motivated and Reach Your Big Goals in Life

    How to Stay Motivated and Reach Your Big Goals in Life

    It is hardly a secret that the key to successfully accomplishing one goal after another is staying motivated. There are, of course, tasks which successful people may not like at all, yet they find motivation to complete them because they recognize how each particular task serves a greater goal.

    So how to stay motivated most of the time? Here are 5 simple yet effective ways on how to stay motivated and get what you want:

    1. Find the Good Reasons

    Anything you do, no matter how simple, has a number of good reasons behind it.

    You may not be able to find good reasons to do some tasks at first but, if you take just a few moments to analyze them, you will easily spot something good. We also have many tasks which don’t need any reasoning at all – we’ve been doing them for so long that they feel natural.

    If you’re ever stuck with some tasks you hate and there seems to be no motivation to complete it whatsoever, here’s what you need to do: find your good reasons.

    Even when you set goals, there needs to be reasons behind these goals. They may not be obvious, but stay at it until you see some, as this will bring your motivation back and will help you finish the task.

    Some ideas for what a good reason can be:

    • A material reward – quite often, you will get paid for doing something you normally don’t like doing at all.
    • Personal gain – you will learn something new or will perhaps improve yourself in a certain way.
    • A feeling of accomplishment – at least you’ll be able to walk away feeling great about finding the motivation and courage to complete such a tedious task.
    • A step closer to your bigger goal – even the biggest accomplishments in history have started small and relied on simple and far less pleasant tasks than you might be working on. Every task you complete brings you closer to the ultimate goal, and acknowledging this always feels good.

    2. Make It Fun

    When it comes to motivation, attitude is everything. Different people may have completely opposite feelings towards the same task: some will hate it, others will love it.

    Why do you think this happens? It’s simple: some of us find ways to make any task interesting and fun to do!

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    Take sports for example. Visiting your local gym daily for a half-an-hour workout session sounds rather boring to some. Yet many others love the idea!

    They like exercising not only because they recognize the good reasons behind it, but simply because it’s fun! At certain time of their daily schedule, they find going to gym to be the best thing to do, simply because nothing else will fit their time and lifestyle so perfectly.

    Depending on how you look at it, you can have fun doing just about anything! Just look for ways of having fun, and you’ll find them!

    A simple approach is to start working on any task by asking yourself a few questions:

    • How can I enjoy this task?
    • What can I do to make this task fun for myself and possibly for others?
    • How can I make this work the best part of my day?

    As long as you learn to have the definite expectation of any task being potentially enjoyable, you will start to feel motivated.

    Some of you will probably think of a thing or two which are valid exceptions from this statement, like something you always hate doing no matter how hard you try making it fun. You’re probably right, and that’s why I don’t claim everything to be fun.

    However, most tasks have a great potential of being enjoyable, and so looking for ways to have fun while working is definitely a good habit to acquire.

    3. Take a Different Approach

    When something doesn’t feel right, it’s always a good time to take a moment and look for a different approach for the task.

    You may be doing everything correctly and most efficiently, but such approach isn’t necessarily the most motivating one. Quite often, you can find a number of obvious tweaks to your current approach which will both change your experience and open up new possibilities.

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    That’s why saying “one way or another” is so common — if you really want to accomplish your goal, there is always a way; and most likely, there’s more than one way.

    If a certain approach doesn’t work for you, find another one, and keep trying until you find the one which will both keep you motivated and get you the desired results.

    Some people think that trying a different approach means giving up. They take pride in being really stubborn and refusing to try any other options on their way towards the goal.

    My opinion on this is that the power of focus is great, but you should be focusing on your goal, and not limiting your options by focusing on just one way to accomplish it it.

    4. Recognize Your Progress

    Everything you may be working on can be easily split into smaller parts and stages. For most goals, it is quite natural to split the process of accomplishing them into smaller tasks and milestones. There are a few reasons behind doing this, and one of them is tracking your progress.

    We track our progress automatically with most activities. But to stay motivated, you need to recognize your progress, not merely track it.

    Here’s how tracking and recognizing your progress is different:

    Tracking is merely taking a note of having reached a certain stage in your process. Recognizing is taking time to look at a bigger picture and realize where exactly you are, and how much more you have left to do.

    For example, if you’re going to read a book, always start by going through the contents table. Getting familiar with chapter titles and memorizing their total number will make it easier for you to recognize your progress as you read. Confirming how many pages your book has before starting it is also a good idea.

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    You see, reading any book you will be automatically looking at page numbers and chapter titles, but without knowing the total number of pages, this information will have little meaning.

    Somehow, it is human nature to always want things to happen in short term or even at once. Even though we split complex tasks into simpler actions, we don’t quite feel the satisfaction until all is done and the task is fully complete.

    For many scenarios though, the task is so vast that such approach will drain all the motivation out of you long before you have a chance to reach your goal. That’s why it is important to always take small steps and recognize the positive different and progress made. This is how your motivation can sustain in long term.

    5. Reward Yourself

    This is a trick everyone likes: rewarding yourself is always pleasant. This is also one of the easiest and at the same time most powerful ways to stay motivated!

    Feeling down about doing something? Dread the idea of working on some task? Hate the whole idea of working? You’re not alone.

    Right from the beginning, agree on some deliverables which will justify yourself getting rewarded. As soon as you get one of the agreed results, take time to reward yourself in some way.

    For some tasks, just taking a break and relaxing for a few minutes will do.

    For others, you may want to get a fresh cup of coffee and even treat yourself a dessert.

    For even bigger and more demanding tasks, reward yourself by doing something even more enjoyable, like going to a cinema or taking a trip to some place nice, or even buying yourself something.

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    Your progress may not seem to others like anything worth celebrating but, take time and do it anyway! It is your task and your reward, so any ways to stay motivated are good.

    The more you reward yourself for the honestly made progress, the more motivated you will feel about reaching new milestones, thus finally accomplishing your goal.

    Mix and Match

    Now that you have these five ways of staying motivated, it is a good moment to give you the key to them all: mix and match!

    Pick one of the techniques and apply it to your situation. If it doesn’t work, or if you simply want to get more motivated, try another technique right way. Mix different approaches and match them to your task for the best results.

    Just think about it: Finding good reasons to work on your task is bound to helping you feel better; and identifying ways to make it fun will help you enjoy the task even more.

    Or, if you plan a few points for easier tracking of your progress and on top of that, agree on rewarding yourself as you go; this will make you feel most motivated about anything you have to work through.

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    Featured photo credit: Lucas Lenzi via unsplash.com

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