Income Statement And Balance Sheet: Why Level 2 Data Is Crucial For Picking Winning Stocks

Have you picked wrong in the stock market? That was wrong of me. How many times have you been wrong in the stock market? Earlier on, it happened way more frequently. Books always help but where are you to actually apply the material? Well, we all know knowledge without action is, well, simply useless. More often than not when starting out, you find yourself migrating to what’s popular and what you enjoy. Not saying that does not work! But, wouldn’t you want to be right more? We all do! Below are some ways Level 2 Data on trading apps ($1.99/month usually,) can help you pick some winners.

First and foremost I do not cast out that these tips will help, being we do not know this stock market. Starting with the income statement, we find revenue, gross profit, net values, etc… Meanings and differences are important on the income statement because it helps you to see what they are bringing in, versus actually pocketing. That is huge! Cost of revenue and operating activity expenses also fall here. If you can, try to go to the end and work up, really see the growth or decline in all positions.

Next, the balance sheet. I spend most of my time here, along with a few others. Regardless, the balance sheet holds all the assets and liabilities, net increase in cash equivalence, and total debt. The latter is big because if a company has no debt, the company is not going bankrupt anytime soon. Seeing year after year how a company resolves debt offerings is something to watch when evaluating. Having a company on top of debt, the plan to remove it, and what to replace it with is what makes an excellent organization.

Lastly, p/e ratios are a key place to search as well. Do the research and results will come. Per every investor, so why not try. 2021 will bring a change of scenery to the old market. IPO’s moving at an all -time rate since the dot.com boom, crypto currencies, etc… Stick to what you know and understand, or have a direct understanding of how they run and operate. This helps you evaluate and know competition. Buy on low days and pushing the average price down is what you can do once you’ve found your long-term successes! Share some insight on any winners you’ve selected!

Photo by Rakicevic Nenad on Pexels.com

2 Comments Add yours

  1. “Stocks with calulated risks attached make 75% of storckholders
    from $$ rich $$ -to $$$ wealthy $$$”!! ”

    _-Van Prince

    Liked by 1 person

  2. “Stocks with calulated risks attached make 75% of storckholders
    from $$ rich $$ -to $$$ wealthy $$$”!! ”

    _-Van Prince

    Liked by 1 person

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