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Welcome to Day Trade The World™ day trading blog. Please click on an article to read it.

Blog del 16 Ottobre

The Nasdaq Canada Conference Call

Day Trade The World™ is happy to host our next conference call with Nasdaq Canada.

On Thursday, October 12, 2017, at 11:45 AM ET, we talked with Nasdaq Canada Vice President Stephen Hretchka and Vice President of Sales Kevin Utarid.

The topics discussed were as below:

  • Marketplace Structure
  • Nasdaq CXD
    • Order types
    • Midpoint and touch opportunities
    • Sub $1.00 issues and TSX Venture opportunities
  • Nasdaq CX2
    • Inverted model and direction of the Canadian environment
  • ​Questions & Answers

Call Connection Details

  • Date: Thursday, October 12, 2017
  • Time: 11:45 AM ET
  • URL: https://meet.lync.com/daytradetheworld/conference/240YASM2

 

Blog del 16 ottobre

A Guide to Performing Extensive Company Analysis

A Guide to Performing Extensive Company Analysis – Introduction

Investment research is a very important thing for any trader. Broadly, traders can do two types of investment researches. First, they can do technical analysis. This is usually more important for traders who want to enter and exit trades within a short period. Second, they can do fundamental analysis. This involves looking at the broad issues surrounding an asset. For example, fundamental analysis about currencies can involve looking at the underlying economic data. In this article, I will look at the best way to conduct an extensive study on a company you want to invest in.

  • Start at the top

To do an extensive study, you first need to start at the top. This involves looking at the world today and imagine how it will look in the next ten years. For example, you can look at the vehicle manufacturing industry and imagine how the world will look in that period. Today, every person in the vehicle industry is talking about electric vehicles and autonomous driving. Countries like China and the United Kingdom have set a target to banning the combustion engine. This means that we will see a lot of investments in the electric vehicle industry. Therefore, when analyzing a car company, you need to look at this macro-theme and decide whether the car company you want to invest in has an edge in the industry.

In the example of cars, you should only invest in companies that are shifting gears to the electric and autonomous vehicles. Equally, what happens to the petroleum industry when this happens? With reduced demand in the oil industry, chances are that oil companies that don’t pivot to the electric sector will lose out. Therefore, in the long-term, it would be unwise to invest in oil and gas companies that are not shifting gears to the new electric industry.

  • Focus on the company and its competitors

After looking at the macro theme and finding companies, you should now find companies that will be leaders in the next decade. A good example is to look at the e-commerce industry. In the next ten years, more people will be shopping using e-commerce. Retailers that don’t shift to the e-commerce direction will likely go bankrupt in the next few years. Therefore, you can look at companies like Amazon and Walmart that are increasingly investing in e-commerce.

After finding a company, you should also consider its competitors to find the company that will likely dominate the market in the next ten years. In the case of Amazon, you can look at companies like Walmart and eBay. Your goal here is to find a company that has a better chance of being big in the next ten years.

  • Look at the financials

After narrowing your search, you should focus on the company’s financials and its management. In this, you goal is to find a company that has good finances and is led well. Your goal is to find a company that has the funds to continue making long-term investments. Therefore, look at a company like Amazon or Alibaba that have the cash flow to fund their next investments and growth.

  • Valuation

After narrowing your analysis, you should now look at the valuation of a company. A company might have the best products but be overly overvalued. The rule of investing is that you should never overpay for an investment. A good example is what happened during the dot com bubble. During the bubble, CISCO was worth more than $500 billion. This is because investors expected its products to dominate the market. Surely, the company’s routers have the biggest market share. However, competition eroded the company’s market share and people who bought the stock made huge losses. Therefore, to avoid this situation, you should do your best to buy a company that is not highly valued. To do this, you can use several valuation models. However, the most appropriate one is comparing the company’s price to earnings ratio with that of its competitors. Ideally, you should invest in companies that have low or reasonable PE multiples.

A Guide to Performing Extensive Company Analysis – Useful tips:

Blog del 9 ottobre

Top Economic Themes to Focus on in Q4

Top Economic Themes to Focus on in Q4 – Introduction

To many investors, 2017 has been a largely successful year. The stock market in both the emerging markets and the developed countries has hit all times high. Commodities have made some significant recovery and currencies from the emerging markets have also recovered, albeit at a slower rate. The biggest winners are investors who bought cryptocurrencies like Bitcoin and Ethereum. They are rich now. In this article, I will look at the major themes that investors and traders need to focus on in the new quarter.

  • Federal Reserve Chair

The federal reserve chair is one of the most important people in the world. Some have argued that the chair is usually more powerful than the president of the United States. This is because the work of the fed chair affects all people, not only in America but around the world. For example, if the federal chair decides to increase interest rates today, the impacts will be felt by all people. This is different from the president’s decisions which might affect just a few.

This quarter, Donald Trump is scheduled to make his decision on the person who will replace Janet Yellen as the fed chair. This is one of the most important decisions that Trump is expected to make this quarter.

Before him, Trump is expected to make a decision on whether to retain Janet Yellen or replace her with people like Gary Cohn, Kevin Warsh, and Neel Kashkari.

Before Trump’s response to the Charlottesville riots, the clear nominee was to be Gary Coh, who serves as the national economic advisor. However, Trump started considering other people after Cohn’s comments against him.

I believe that Janet Yellen is the best of the said nominees. She has steered the fed in a clear direction that investors and all stakeholders love. In her era, unemployment rate is at the lowest point, the jobless claims have reduced, and inflation has been contained.

Depending on who Trump choses, the market will definitely move in approval or disapproval of his choice.

  • Corporate Earnings

At the end of every quarter, companies are required to publish their quarterly earnings. They publish their earnings and offer their conference call to their investors and analysts to update them on the performance of the business. This quarterly call is especially important because of the performance of the stock market. Since the market has performed really well this year, investors will seek to assess their portfolios to show whether the performance is backed by the real numbers. Traders and investors alike should watch these numbers very carefully.

  • North Korea

North Korea is an investment theme that should not be avoided. In Q3, the theme has been really important because of the rhetoric coming from the two countries. At the United Nations, Trump threatened to destroy North Korea. He even gave Kim Jong Un a new name, Rocket Man. From their end, North Korea tested several weapons, including one that can reach the United States. They threatened to fire back when attacked. At the beginning of the quarter the news about North Korea made the stock market tank and gold to rise. However, as the quarter progressed, investors shrugged the news from North Korea. The stock market stopped to react. In the new quarter, we will continue to monitor the situation coming from the country.

In the new quarter, we will also continue to watch the oil market and the news coming from OPEC. This year has been uneventful about the oil market. We will however watch whether Trump will decertify the Iran deal. We will also watch how the White House implements the promised Trump tax cuts.

Top Economic Themes to Focus on in Q4 – Useful Links:

  • To find out more, please, go to TheGuardian;
  • Another interesting reading on Independent;
  • Click on CNBC for further information on the matter.

 

Nordic Market blog del 9

Nordic Markets Auction Behavior Change

Thursday, September 7, 2017, the close auction order acceptance time for the Nordic markets (Helsinki, Stockholm, Copenhagen, and Oslo) ended 15 seconds early.

This change is being done to improve our handling of close auction orders. Orders sent after the times below were be rejected.

Adjusted Close Auction Times
  • Helsinki: accepted orders for the close auction from 11:25:00 to 11:29:45
  • Stockholm: accepted orders for the close auction from 11:25:00 to 11:29:45
  • Copenhagen: accepted orders for the close auction from 10:55:00 to 10:59:45
  • Oslo: accepted orders for the close auction from 10:20:00 to 10:24:45

We would also like to remind all traders that Limit orders entered to participate on European markets’ close auction must be entered within 5% of the last trade or the order will get rejected.

Blog del 9 ottobre

How to Invest in Future Technologies Today

How to Invest in Future Technologies Today – Introduction

About 20 years ago, a small company was founded to help people buy books online. The idea was very simple. Today, the company has changed the world by helping people buy everything and deliver it within a few hours. Its Amazon.

A few years later, three young men identified a problem sending money. They developed a platform to help people send money using email. Today, their small company – Paypal –  has become the largest fintech company in the world.

At that time, a young man thought of getting rid of the combustion engine. He believed that the world would be better with electric vehicles. He worked hard and built an electric vehicle company. Today, the company – Tesla – is worth more than the decades old General Motors.

Last but not least, a young man saw an opportunity in the way movies and series were being distributed. He started a company that delivered these products over the internet and in a cheap way. Today, Netflix, is one of the largest entertainment companies in the world.

As an investor, it is very important to have the long-term view of the world and then buy companies that will be very relevant in the next ten and twenty years. All people who invested in the companies I have mentioned above are now wealthy people. This is because they had foresight of how the world would change in future.

The first thing you need to do is to sit back and reflect. In this reflection, you need to take time and look at everything that you use today. Then, go forward to the next ten years and imagine what will happen in the next ten years. For example, we all go to retail stores. What do you think will happen in the retail sector in the next ten years? First, the main reason why many people hate going to the retailers is the problem of queuing. To solve this problem, Amazon showcased a platform where you don’t need to que. All you need to do is enter a store, take your products and go. In the next ten years, the cashiers in the retailers will be non-existent.

A second way to look at it is to look at the manufacturing sector. One of the biggest costs here is human resources. To solve this problem, companies will need to invest in automation. Robots will be everywhere. They will replace humans in virtually all areas. Herein lies another opportunity for you to invest in. Buy companies that manufacture the robots and those that manufacture technology that powers the robots.

As I mentioned last week, you can invest in Tesla by investing in its suppliers. This is simply because Tesla is significantly overvalued company. However, some of its parts-suppliers are not overvalued. For example, I highlighted some of the biggest miners of lithium which is used in the manufacture of batteries. As an investor, you can reflect and find companies that manufacture things that will be used to power the future. For example, you can invest in a company like Alibaba which will (or is) being used to power global commerce in future. The company is also investing heavily in payments meaning that it could be a leading player in the payments industry too.

By having the insight to invest in companies that will power the future, you will be at a good position to make money as an investor (not as a trader).

How to Invest in Future Technologies Today – Useful Tips: