Investing for Beginners 101

[...] that, the valuations are low. Should we really freak out about one red flag? What does the Value Trap Indicator have to say? Another issue comes to light. The debt to equity for this company is very [...]

[...] . We are able to understand if a particular ratio is extremely high or low because the Value Trap Indicator computes this automatically. Because the Value Trap Indicator is centered on a ratio’s [...]

[...] 15 and P/B below 2, this is usually the kind of thing I’m looking for. But what does the Value Trap Indicator say? So far 5 of the 7 categories used in the 7 Steps to Understanding the Stock Market [...]

[...] that parenthesis () means a loss. Right away, look at how fast the Value Trap Indicator went from a Strong Buy (< 250) to a Strong Sell (> 800). Looking at the stock [...]

[...] Trap Indicator. ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] created for. ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] major debacle. ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] breeds success. ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] compounding and superior returns. Those stock buy ideas are published monthly in the Sather Research eLetter, complete with research and Value Trap Indicator values. To subscribe to the Sather [...]

[...] compounding and superior returns. Those stock buy ideas are published monthly in the Sather Research eLetter, complete with research and Value Trap Indicator values. To subscribe to the Sather [...]

[...] compounding and superior returns. Those stock buy ideas are published monthly in the Sather Research eLetter, complete with research and Value Trap Indicator values. To subscribe to the Sather [...]

[...] compounding and superior returns. Those stock buy ideas are published monthly in the Sather Research eLetter, complete with research and Value Trap Indicator values. To subscribe to the Sather [...]

[...] . ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, [...]

[...] . ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] fangs. ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, [...]

[...] . ============================================ This blog post is part of the Stock Market History series. This series tries to uncover what went wrong in the biggest stock market [...]

[...] a dividend Right away you should notice that negative earnings is a big warning sign in individual stocks. (I’m referring to negative yearly earnings). If [...]

[...] can predict the future. Aim for a portfolio of around 20 stocks. 2. Never buy a stock with negative earnings A company that is losing money is a huge red flag. Trust me, I’ve done countless hours of [...]

[...] Tesla. (or BITCOIN) I hope it makes sense to you now. Remember, I showed that this stock had negative earnings and a negative book value. This should prove to you that the basic concepts I am teaching [...]

[...] A with a P/E of 15 and Debt to Equity below 0.5 has far better upside than Stock B with negative earnings and a Debt to Equity of 10. Also, I’ll add that a stock with a market capitalization of $2 [...]

[...] History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, and how investors can use these lessons to prevent major losses in their own [...]

[...] History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, and how investors can use these lessons to prevent major losses in their own [...]

[...] History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, and how investors can use these lessons to prevent major losses in their own [...]

[...] History series. This series tries to uncover what went wrong in the biggest stock market bankruptcies, and how investors can use these lessons to prevent major losses in their own [...]

[...] . It’s not so important which method you choose, but more that you stick to one method. Any investing strategy will have overperformance and underperformance, but a strategy that always changes will [...]

[...] won’t be set up to a failing system. The two most basic and important foundations for your investing strategy need to be: 1. Dollar cost averaging 2. Diversification Just by implementing these 2 [...]