Favorite value to use when trading/investing? - Stocks and ETFs Trading | futures io social day trading
futures io futures trading


Favorite value to use when trading/investing?
Updated: Views / Replies:479 / 4
Created: by ziggle12 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Favorite value to use when trading/investing?

  #1 (permalink)
Trading Apprentice
Pittsburgh
 
Futures Experience: Intermediate
Platform: Not Necessary
Favorite Futures: Stocks
 
Posts: 11 since Apr 2014
Thanks: 6 given, 3 received

Favorite value to use when trading/investing?

My personal favorite is P/E ratio since I'm a bit old fashion. Also could you include whether you are college trained in finance/economics or not? It would help my data collection greatly.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Prince George BC Canada
 
Futures Experience: Advanced
Platform: IBs TWS
Broker/Data: IB
Favorite Futures: Stocks
 
deaddog's Avatar
 
Posts: 591 since May 2013
Thanks: 97 given, 643 received


Revenue growth.
PEG ratio

None of which really matter for short term trading as long as what you are trading is trending. Or in a range if you are trading ranges.

It is hard to find the Truth when you start your search with a preconceived notion of what the Truth will be.
Reply With Quote
 
  #4 (permalink)
Membership Temporarily Revoked
Calgary Alberta/Canada
 
Futures Experience: Advanced
Platform: TDWaterhouse
Favorite Futures: stocks (long term)
 
Posts: 934 since Feb 2014
Thanks: 180 given, 777 received


ziggle12 View Post
My personal favorite is P/E ratio since I'm a bit old fashion. Also could you include whether you are college trained in finance/economics or not? It would help my data collection greatly.

you don't say how you use P/E ratios. By themselves these ratios have limited value. It is the P/E ratio of one company in relationship to values of P/E in the company's peer group that could be important. P/E ratios are nothing more than investor expectations....a high P/E simply means that the investors anticipate that the company will be destined on getting higher earnings so they are willing to pay a premium for that stock because of this. A low P/E ratio shows a company who most investors feel is past its prime even though it has relatively high earnings.

the problem with Fundamental data is that you never get a consistent value when you look at different information sources.

let's look at Bank of America [NYSE:BAC] as an example

Bloomberg : P/E = 10.70

BAC:New York Stock Quote - Bank of America Corp - Bloomberg

Marketwatch : P/E = 20.19

BAC Stock Quote - Bank of America Corp. Stock Price Today (BAC:NYSE) - MarketWatch

Toronto Globe and Mail (major Canadian financial info source) P/E = 10.90

Bank of America Stock Quote - The Globe and Mail

Ahhhh so the MarketWatch value is obviously wrong...NOT...Its P/E is calculated on a trailing 12 months whereas the other two are calculated on ESTIMATED forward earnings. Which is the right one? {shrug} to me an estimate is basically useless as it is a guess...the trailing value is at least based on real data. BUT as you can see whether the number is based on trailing or estimated earnings is not always reported.

AND Why are not all numbers that are reported based on the same format the same??? well on the estimated data it depends on it depends on who does the estimate....but that aside since the Price is variable in that ratio there is no uniformity as to when the ratio was calculated.

That is not all....what would be important to me (and I do pay attention to Fundamental data from time to time) would be the TREND in the ratio....not the one number.

Let us take two companies that are producing gold mines.

Company A has a current P/E ttm (trailing 12 months) of 80
Company B has a current P/E ttm (trailing 12 months) of 30

so OBVIOUSLY Company A is the most favoured companies by investors...right? Not necessarily so IMHO

What if over the past 5 years the P/E ttm for Company A's P/E declined from 200 to 80 while Company B's P/E rose from 5 to 30? Which one is the better P/E now??? You would have to figure out WHY Company B's value rose while the other is falling.

Nobody produces such information??? correct but it is simple math that can be calculated from annual financial reports

for example for Gold Corp [GG] here is a summary of its last five financial reports

Stock Market Quotes | Company Financials, Financial Information

at the bottom is the Earnings per Share for the previous year and All you need is the Price of the share on Dec 31 for each year and do the division.

By doing it yourself YOU KNOW the information is accurate and consistent.

There is a lot that can be done with Financial ratios but you will rarely find consistency with the data and few ever talk about trending these ratios.

Oh Yeah my financial education: 20+ years of self study....

Reply With Quote
The following user says Thank You to Underexposed for this post:
 
  #5 (permalink)
Trading Apprentice
Pittsburgh
 
Futures Experience: Intermediate
Platform: Not Necessary
Favorite Futures: Stocks
 
Posts: 11 since Apr 2014
Thanks: 6 given, 3 received


Underexposed View Post
you don't say how you use P/E ratios. By themselves these ratios have limited value. It is the P/E ratio of one company in relationship to values of P/E in the company's peer group that could be important. P/E ratios are nothing more than investor expectations....a high P/E simply means that the investors anticipate that the company will be destined on getting higher earnings so they are willing to pay a premium for that stock because of this. A low P/E ratio shows a company who most investors feel is past its prime even though it has relatively high earnings.

the problem with Fundamental data is that you never get a consistent value when you look at different information sources.

let's look at Bank of America [NYSE:BAC] as an example

Bloomberg : P/E = 10.70


Marketwatch : P/E = 20.19

Toronto Globe and Mail (major Canadian financial info source) P/E = 10.90

Ahhhh so the MarketWatch value is obviously wrong...NOT...Its P/E is calculated on a trailing 12 months whereas the other two are calculated on ESTIMATED forward earnings. Which is the right one? {shrug} to me an estimate is basically useless as it is a guess...the trailing value is at least based on real data. BUT as you can see whether the number is based on trailing or estimated earnings is not always reported.

AND Why are not all numbers that are reported based on the same format the same??? well on the estimated data it depends on it depends on who does the estimate....but that aside since the Price is variable in that ratio there is no uniformity as to when the ratio was calculated.

That is not all....what would be important to me (and I do pay attention to Fundamental data from time to time) would be the TREND in the ratio....not the one number.

Let us take two companies that are producing gold mines.

Company A has a current P/E ttm (trailing 12 months) of 80
Company B has a current P/E ttm (trailing 12 months) of 30

so OBVIOUSLY Company A is the most favoured companies by investors...right? Not necessarily so IMHO

What if over the past 5 years the P/E ttm for Company A's P/E declined from 200 to 80 while Company B's P/E rose from 5 to 30? Which one is the better P/E now??? You would have to figure out WHY Company B's value rose while the other is falling.

Nobody produces such information??? correct but it is simple math that can be calculated from annual financial reports

for example for Gold Corp [GG] here is a summary of its last five financial reports


at the bottom is the Earnings per Share for the previous year and All you need is the Price of the share on Dec 31 for each year and do the division.

By doing it yourself YOU KNOW the information is accurate and consistent.

There is a lot that can be done with Financial ratios but you will rarely find consistency with the data and few ever talk about trending these ratios.

Oh Yeah my financial education: 20+ years of self study....

That was a great explanation actually. I should have explained above but this is a survey for school and I am looking for differences between where non-finance/economics majors, and the self taught differ.

Reply With Quote

Reply



futures io > > > > Favorite value to use when trading/investing?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Favorite/most helpful Algorithmic Trading resources? treydog999 Elite Automated Trading 5 May 15th, 2013 11:06 AM
Favorite websites sharky Off-Topic 28 December 9th, 2012 11:34 PM
Favorite trading videos cunparis Traders Hideout 6 June 29th, 2012 01:41 AM
Favorite Combinations websouth The Elite Circle 189 September 27th, 2011 10:38 PM
Favorite Instruments tderrick Traders Hideout 3 September 26th, 2010 05:13 AM


All times are GMT -4. The time now is 07:50 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-17 in 0.11 seconds with 19 queries on phoenix via your IP 54.163.209.109