How to Write a Stock Market Report

Stock Market IndexesIn order to write a good stock market report, you need to know the key elements and data to include. Always report on bigger-picture stock market indicators like the Dow Jones, S& P 500, and NASDAQ. In addition to these broader indices, you might choose to focus on a particular sector of the economy each day, so Monday you might report on stock market indexes that focus on health, and Tuesday focus on technology.
Key Weekly or Quarterly ReportsReport on key weekly or quarterly reports such as jobless reports and earnings reports, which have an effect on the Stock Market. Give advance notice as to when certain reports are expected to be published.
Key Stocks to WatchInclude a discussion of any major stocks whose dramatic rise, fall or upcoming business deals are affecting or projected to affect the overall stock martet. If the report is daily, include a discussion of the day's opening and closing Dow Jones, NASDAQ and S&P Index.
Get Up to Date InfoYou will need to do a serious amount of work keeping updated on the key elements of the stock market. You will want to include links to live data, where applicable.
TipsDepending on how the economy is doing, you may want to include a 'Tips' section for taking advantage of a particular growing sector, such as healthcare or technology, and explain how that sector's growth and focus might affect the stock market.
Publish OftenIn order to be relevant, you will need to gather data at least daily and publish reports online. Use online reporting tools so you can easily publish the report as a blog or an email newsletter. Make sure whatever format you publish in is accessible for BlackBerry or other mobile device users.

How to Choose a Stock to Buy

Always ask yourself these two questions:What am I buying?ANDHow much do I have to pay for it?Never use only one of these questions, always ask both.
WHAT AM I BUYING?When you buy a stock you are effectively buying a piece of a business, therefore, you become one of the legal owners. Always be sure that you are buying something that you would like to own! I do not even make any trade (even if I just hold the stock for a few days) with a stock that I would not hold for the long term. If the market does not do what I expect it to do, I just hold on to my investment and make money on the long run. Heads I win, Tails I still win. While not common, this is the type of situation I seek.Things to look for on business:Above average(or at least VERY stable) profit margins.Long term above average return on equity.Easily payable debt.No need to keep inventing or consistently changing products (This rules out most technology stocks).This makes the business much more predictable. I also try to avoid companies that are too dependant on management's decisions.Management whose decisions you like or at least are comfortable with.Increases its earnings in the long run.Has some sort of durable competitive advantage.
HOW MUCH DO I HAVE TO PAY FOR IT?Never assume the market price of an asset (or stock) is a rational price. The current price may be way too expensive or dirty cheap. Its up to you to determine just that. I strongly believe stock markets are not efficient. I recently bought the common stock of a Colombian Bank whose earnings have increased about 20 percent since I bought it a few months ago, yet the market values the company at a lower price than the price I paid for it (This is not a mystery, since investors are afraid of banks for the moment). Again, I strongly believe stock markets are not efficient.Things to look for in price:A low PEG ratio. The lower the better, but don't sacrifice business quality.A decent dividend yield (not necessary, but a big plus)The price must not be on free-fall! If it is dropping fast wait until it stops!Relatively low P/E ratio (Don't pay more than about 18 times earnings unless the earnings are growing like crazy or the business is top notch).Try to find stocks trading below net asset value (not necessary, but a plus).You should pay waaay less for stocks on politically unstable regions of the world.A price you are happy with even if the stock drops 99% the very next day. Remember that market prices can be volatile. A good deal is a good deal even if tomorrow brings an even better deal.
Do not ignore secular or macroeconomic trends. Take advantage of them. Always take into account the global economic environment and outlook. I will be adding links to related articles on the resources section at the bottom of the pages, so consider adding this page to bookmarks. ( :

How to Compare Stock Prices

Analyze a company's price-to-earnings ratio. The most traditional method of determining whether a stock is valued properly is to analyze this ratio of its price to the company's annual earnings per share. The P/E ratio is at the core of fundamental analysis.For example, if XYZ earned $8.50 per share last year and the stock is trading at $125 per share, the stock has a P/E ratio of approximately 15-to-1. In other words, the stock is trading at 15 times the annual earnings. Generally, the lower the P/E ratio, the better value the stock represents. Older blue chip companies typically trade at eight to 12 times earnings, while highflying technology companies can trade at 30 to 40 times earnings or more. A company can even be losing money and trade at a high price.
Compare a stock price to other companies in the same sector. It stands to reason that two or more publicly traded companies in the same business should be roughly similar in stock price, but this is rarely the case. By analyzing an entire business sector (airlines, banking, construction, etc.), you get a feel for which are the best performing stocks in that particular sector. Comparing the stock prices side by side often reveals which companies are best poised for growth in that sector. Google Finance offers excellent sector coverage.
Analyze the biggest winners and losers. Most stock-quoting systems will give you access to the biggest price and percentage movers of the day. Stocks that gained or lost the greatest dollar amount or percentage make for interesting analysis and potential investments. Stocks that lost much of their value one day might be due for a nice rebound the next. Likewise, by studying the stocks that gained a great deal in a given day, you may be able to identify other stocks poised to make a similar move.

How to Track the Stock Market (9 Steps)

Match the appropriate stock market index to your investment portfolio or economic region of interest. In the U.S., the Dow Jones industrial average, S&P 500 and Nasdaq Composite are the three major stock market indexes. The Dow and S&P 500 track large-capitalization stocks such as Exxon Mobil and Wal-Mart. The Nasdaq is associated with technology companies, such as Apple and Google.
Watch financial programs on TV or pull up online portals for stock tickers that present the major indexes in real time. Bloomberg and CNBC both have a television and Internet presence where you can follow the Dow, S&P 500 and Nasdaq throughout the day.
Study financial news stories on days when major indexes shift by at least 1 percent in value since the prior trading session. Significant political and economic events, such as elections and employment numbers, may be behind the volatility.
Monitor prevailing interest rates to foreshadow stock market performance. Lower interest rates are ideal for stocks because reduced borrowing costs translate into higher corporate profits.



List the individual stock holdings within your portfolio alongside investments that you are considering for purchase. Prioritize your list according to the financial value of each investment and identify their stock ticker symbols.
Pull up real-time stock quotes for companies that interest you by entering ticker symbols into online quote interfaces such as the one on Yahoo! Finance (see Resources). The daily newspaper reports on the prior trading session with stock market closing prices. Sequentially check share prices by researching quotes for your largest investments first.
Search for additional news about a company when its stock fluctuates by at least 1 percent in value. Company earnings reports and product launches may be contributing factors in dramatic swings in stock price.
Compare basic financial ratios for stocks of interest. Online stock-quote sources like Yahoo! Finance and newspapers will list price-to-earnings (P/E) ratios and dividend yields alongside share prices. Stocks with lower P/E ratios and higher dividend yields may present better value for investors.
Contact corporate investor relations departments at companies to get annual reports that summarize financial statements and business developments that affect your stocks. Compare this data against historical share prices to anticipate trends.