Monitoring of exchange companies: basic

Coordinator Loic Grasset

Updated

To invest wisely, it is best to have the right information at the moment. T. Tips and best practices shared by Frank Morel, founder and president of stock media Zonebourse.com and Marketscreener.com.

RUN THE BASICS “Behaving like an entrepreneur is very important. You buy securities of exchange companies. To hope for long-term results, you can’t just invest without looking at the basics. It is necessary to pay close attention to the evolution of their market, to make sure that they grow so that they make money and so that they do not become over-indebted when reviewing their accounts. It is about understanding where the company you plan to invest in comes from, which can give an indication of how it may grow in the future. »

LEARN ON THE SOURCE Most online brokers, and even more so “neo-brokers”, these new cheap participants, are fighting for prices and for the widest coverage of the market, but they offer little or no information and customer service. Therefore, you should look for information elsewhere than with your broker. The most reliable source is the listed companies, which are obliged to communicate in a standardized, transparent and regular manner. Adjusted information is the source of all news from the press and analysts. Social networks have their application, not so much for influential people, whose job is also to create a fuss, but rather to almost instantly determine the cause of a sudden change in price in the stock market. Every day the tone is set by several editors, such as Marc Fiorentino, Anthony Bondine, Thomas Vejle or Xavier Feno. They allow you to perceive the atmosphere of the day or week. To reach heights, the decipherments of forecasters such as Christophe Barro or Xavier Delmas are invaluable.

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REPORT ESTIMATED PROFIT ESTIMATES “On a site like ours, you have access to estimates of the profits of companies that are on the stock exchange for one or three years, made by financial analysts, collected by global providers of financial information. If the samples are limited to small and medium values, we can count more than fifty estimates for a company like Apple. One of the most interesting things to watch for is the evolution of profit expectations. This allows us to perceive the state of mind of observers in relation to their expectations for the next quarters. Their revision in the direction of increase or decrease has a significant impact on the share price, in contrast to opinions and goals, which are more subjective. Too often, analysts are too cautious in their assessments in both directions. The sequence of ascending views is often synonymous with an upward price. »

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THE MAIN EXCHANGE RESPONSIBLE TO KNOW
There are different types of exchange orders to buy and sell your securities. Everyone obeys a certain logic in accordance with the desired goal.
MARKET ORDER. Also called an ATP, it allows you to be confident in buying or selling a security, regardless of its price. Its use should be reserved for transactions with highly liquid high values ​​that need to be completed as soon as possible.
LIMIT ORDER. This is the safest way to control the amount of the transaction. It allows you to determine the number of relevant securities, as well as the price above which you do not want to buy and below which you will not sell. Disadvantage, it may never be performed or only partially performed.
TRIGGER ORDER. Also called a stop order, it allows you to set a price limit from which you will automatically initiate a purchase or sale without a price limit. Thus, this order does not allow to control the price of execution.
ORDERS FOR THE FURTHER TURK. It combines the logic of the trigger order with the logic of the limit order. This order is not a priority, but has the advantage of price control.