So today we're going to be talking about basic fundamental analysis. Now you know well, you might know i'm guessing. You know in day trading and even in short-term swing trading, we don't get too into the weeds when it comes to the fundamentals. Profit loss earnings per share, but i do think you still do have to have at least a basic understanding of the financials behind the company.

Again, we all know trade, the price action. I agree 85, but don't discount having a basic understanding of whether they're profitable, whether they've got sales etc in stocks of trade. We've got a great quick way to isolate them. Hey everyone be sure to like share subscribe and, most importantly, if you're on youtube ring that bell, we drop a ton of videos, we go live, uh, podcasts, long form, videos, we have a ton of content out there and a lot of it, especially the live.

Videos are very timely ring that bell to be notified as soon as we go live. That being said, i am lead trainer with stacks of trade. Tim bowen, if you like these videos, if you want to get more in depth, click below check out the steady trade team, it's a course where we do two webinars every single day i have an entire team of mentors that works with me. We break down all facets of trading risk management.

You know, uh chart patterns, technicals fundamentals, which is what we're going to talk about today. All everything i've got over 3 000 archived webinars twice a day, live every single trading day all right. That being said, let's talk about, what's called the key statistics tab in stocks to trade and i'm going to walk you through the whole tab, but i'm going to give you the main things we focus on when it comes to short-term trading. Okay, so tsri is an example of something i'm using today: uh pretty decent gap up so far, looking like a one and done, but they did release earnings last night and earnings not bad low float stock hanging around this morning might try and v-weap.

That being said, let's see today i'm recording on january 11. 2022.. Let's see what happens if tsri can reclaim v-lab definitely pause this and bring up the chart and see what happens later in this afternoon. If this this thing, re-test v-app, pushes through 1250, i mean it's trading, 31 million shares mid-day right now, so not bad.

Anyway, apart from the trivia, let's talk about the key statistics. Tab so you've got it located right here under your info box. I am going to zoom up. So that's a little bit easier for you to see and you can see there is a wealth of information here.

But what i want to do is point out the. What is important to look at because again, i know i said in the intro short-term trading. We want a basic understanding of the fundamentals, but we don't. You know, i always struggle to say anything is a waste of time, because um i mean listen.

If you're really digging into a company you're really getting into the history and you're doing a spreadsheet, you you consider yourself a goldman sachs intern, be you know, and you do that due diligence. I would never say that as a waste of time, but at the end of the day, when we're talking day trading and again short term swing trading, it can be a little. You know analysis paralysis, because if you're spending like hours breaking down the profit and loss and the earnings per share and whether they're, growing or contracting and and whether they you know, pay their bills and all this fundamental analysis, these stocks spike so fast that, if you Spend hours doing that research, it's the end of the day and the run is probably over okay. So caution when i say it's a waste of time, because i think it's good to understand, but let's talk about the speed readers way, the cliff notes.

Ah, i like that, how about the timbo notes, instead of cliff notes to fundamental analysis - hey that might be the name of this video so anyway, we're gon na start out right here and i'm just gon na walk you through the things that i think you should Understand and know so right off the bat we care about market cap. Okay, this is nice when, in stocks of trade you'll see, the market cap is changing real time market cap. So what we like to do is i mean obviously, when we're day trading smaller cap stocks are better, they have the better potential to move, and you know we can see 22 million market cap, it's a 1 million floater trading net 1.5 million floater trading 11. A share so we can use float that way, but also we can look at it from a you know.

A market cap perspective as well, because we know that unless you've got an amazing story, you know if you're a if you're a multi-billion dollar market cap stock. We understand that there's only so much potential there now doesn't mean you don't trade them. It's just got to understand if it's a four billion dollar stock and it doubles, you know they're, adding four billion to their market yeah. It's a lot of money that something like a 20 million market cap stock like tsri.

It doubles they just added 20 million 22., so that is that is doable, especially when you're trading 30 million so understand the relation between buyers and the market cap um. We almost never look at price to earnings price to sales book ratio because most of these are going to be terrible. Okay, that's where a lot of the more higher level fundamentals apply to higher quality stocks, because here's the thing with penny stocks, all their finance fundamentals, are going to be bad, we're just looking for the ones that are less bad okay. So next thing we look for is profit margin um, so so what i'm getting at? We skip past the price and earnings this column.

Next thing we do care about is profitability because tsri i mean here's. This isn't a good example of an outlier okay they're, making money that that is. That is very unusual in low price stock. Now i want to be clear, as i step through these: no one fundamental makes it a buy, but we're building that case you'll hear me say that a lot we're checking those boxes.

So the fact that they're profitable is encouraging um next thing we're going to scroll down to is revenue um. You would be surprised, i'm also i'm frequently. Well, i shouldn't say surprise because i know a lot of most people are newer traders coming to these videos, but so many people are like whoa. It can't be right.

They have zero revenue. No, when you're talking biotechs particularly i mean anybody takes high price low price. I mean quite frequently zero revenue is, that is right, understand the business, and actually we got a ton of videos. I can never remember which side it is.

We've got a ton of videos over here that go over. You know biotechs how to trade them etc, but understand the business. Biotechs are a home run business, you burn cash, burn cash burn cash and then hopefully you hit that home run. So it is not unusual to see a biotech with zero revenue now outside of biotech.

That's a big red flag because understand the difference i mean if you're, if you're selling coffee cups, you should be able to sell some coffee clubs, okay, biotechs, they don't have a bit. They don't have a product. That's ready yet because of fda approvals. So understand that if you're trading a biotech with zero revenue, not a red flag, if you're looking to trade, a non-biotech with zero revenue, red flag, okay, um next thing, we're looking for cash on hand, always a good sign and what i look at is cash relative To the market cap so again they got 22 million dollar market cap and they got eight million in cash.

You know it's not bad, you know um and basically, what you're looking for is just some cash again understand. If they have, i mean you'll, it's not unusual. You've, i've seen penny low float, penny stocks with like ten thousand dollars in cash. Okay, that ain't good.

You got ta, you got ta pay payroll. You know you got ta pay rent, you know you etc. So look for some cash, especially relative to the market cap. They have roughly you know, half their market cap and cash, not bad, then the next thing we look for is positive cash flow.

So again, remember i said: tsri was an earnings winner last night, 1.3 million in positive cash flow. And then you know it's not amazing, but it's better than losing money. You you'll be surprised at and maybe on these prizes, but i mean the majority of 1.5 million flow stocks are going to be cash flow, negative. Okay, that's you know bad.

I mean i mean you know that in your own life, okay, if you're making a thousand bucks a week but you're spending, two grand - it's not good, it's going to catch up with you eventually, so positive cash flow encouraging for tsri. Next thing we look at is, and - and i don't you know - i typically use the chart for this, but it is nice. You can see 52 week high 52 week lows and the 250 day moving averages. So those are, you know, depending on how your brain works.

For me, i'm a chart, guy charts, charts charts, but it is nice that we have this. If you're more of a text, guy or gal, i mean different people think different ways to me. I never look at this for the two for the 52 week time. I always flip to the chart to see, because i want to see where that 52 week is high, is relative to where the stock is trading.

Then the last few things we look at is guess what float float float flow. You've heard me say that 75 times this video um, the trend for the last five or six years in day trading, is low, float stocks and float rotation. So we look at that. All the time and then the last thing i will finish on short uh, the short interest.

Now we care about this but understand that data does lag. But you just like to see when a stock has a high short uh interest, it's a good indicator, so um then dividend splits very seldom. Do we ever look at this because crappies penny stocks, don't pay dividends, etc? But you can see splits. We do care about that, so there you go big thing: we're looking for sales like actual sales, unless it's a biotech, positive cash flow and whether they have cash in the bank, whether they can keep paying payroll, whether they can survive float.

And then we look at the spots on the chart, etc so basic fundamental analysis. I know it's a 10 minute video, but once you get to know what to look for under the key statistics tag, it only takes you a minute. You know you could once you once you've refined your process. You can walk right through this in a minute easily, so um all right again, if you enjoyed this video check out the steady trade team and would love to work with you, it's a small group.

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