Week 7: November 16, 2019
We reviewed earnings today and then learnt about P/E Ratio.
P/E Ratio = Price of the Share / EPS
PE normal = 15 -20
PE High = More than 20 means OVERVALUED. This means that you are paying too much for every dollar the company earns OR that the market has high expectations of the future of this company.
PE LOW= Less than 15 means UNDERVALUED. This means that either you are paying too little for the stock OR that the market has low expectations for this company.
Either way - you research!
Homework:
1) Want to see ACTIVE TRADING in your portfolios. Until you start trading you will not be ready to buy stocks in real life.
- Each of you can buy and sell what you want
- Do not want to see any money left in cash in your portfolio
- Tell me why you bought these stocks
Remember to pay $10 comission every time you buy AND every time you sell.
2) Pick online trading platform.
- Do research and come next week to tell me which online trading platform you have picked.
- Ask your bank what they have for trading.
- Research the rates at different places
Make money this week!!
Week 6: November 9, 2019
We learned about earnings.
Earnings = Total Income - (Total Expenses + Taxes + Dividends)
Earnings Per Share (EPS) = Earnings / Number of Shares
The Higher the company earns per share the better it is. It means it is earning.
We will cover price to earnings next week
Mission:
Continue to work on your portfolios treating it as though it was real money. If you are not happy with the way your stock is performing sell it.
You can also hold on to it if you like the way it is performing.
Use additional cash to buy a stock based on the EPS of it. Tell me why you chose it. (This dies require you to do research about the company).
Week 5: November 2, 2019
We reviewed all the comparison sheets that people had done about different industries and everyone was able to make sense of it.
Mission:
If you haven't completed the analysis from last week, please do it now. This is an important exercise.
This week, sell everything you have and buy a stock as you would if it was real money.
Week 4: October 26, 2019
Kudos to everyone for working so hard on their portfolios!
Today we learnt about Dividends and the correlations between high dividends and price fluctuations and Betas.
Missions:
1) Sell all the stocks you have. Minus the $10 commission.
2) Invest in a Dividend stock. Be prepared to tell me why you like the stock. Have a look at Dividend Aristocrats and see if you your stock is on that list.
3) I have added a Market Comparison Tab in the worksheets. You will compare an industry (5-6 companies in the industry) so that you have shortlisted which ones you will invest in.
Carol: Food Industry
Jeanne: Pet Industry
Padina: Retail Industry
Pete: Precious Metals
Miquela: Banking
Fiona: Auto Industry
Week 3: October 19, 2019
It was a great day today as we did the first analysis of the portfolios. Kudos to Jeanne for diving in and buying penny stocks - such an important learning lesson for all investors.
Here's what we did this week:
Market Cap = Number of Shares * Current price of the shares
It tells you the virtual value of the company. Higher the number means it is more likely to be able to withstand something bad happening to it.
Beta = Tells you how much price fluctuation there is for the stock is compared to the market. So a Beta >1 means that is is more price fluctuation than the market, and a Beta <1 means it is has less price fluctuations than compared to the market.
Mission for this week:
1) Sell the stock in your portfolio. Remember to deduct $10 comission from it.
2) Buy 2 stocks
a) One based on the Market Cap. (Could be high or low - doesn't matter - I just need to know why the market cap attracted you)
b) One based on Beta (Could be high or low - doesn't matter - I just need to know why this beta attracted you).
Here is the challenges you have:
Jeanne: Try and get back to $10,000 in one week.
Carol: Make $100 this week
Miquela: Invest in a company that is not in the food business.
Padina: Try to get back to $10,000
Fiona & Pete: Get spreadsheets complete.
Week 2: October 5, 2019
We did a lot today and here is a recap.
1) You are going to be investing in your virtual investment portfolios with $10,000 today. Here is what you need to do:
a) Pick a stock. Something you know about (could be a company that makes something you like to buy, or equipment you use at work - really anything that you know something about).
b) Look up the Price, Currency traded and other information on Yahoo Finance.
c) Your spreadsheets have an additional section "Week 2.." added to it. Please complete it.
d) If you choose a stock that is USD - you need to convert the price of the stock from USD to CAD. For example, say you invest in AAPL. AAPL is traded on the NYSE and is in USD. The current price is about $220 per share.
- Convert the price into CAD. Do this in Google. Simply type "what is $200 USD in CAD"
- This will give you the current price of the stock in CAD
e) Decide how many stocks you want to buy. You can choose to use up all the $10,000 or buy only 1 share of whatever company you pick. To see how many stocks you can buy do the following steps:
- Convert the price of the stock into CAD
- Deduct Comission: $10,000 -$10 (Comission)= $9,990
- Divide $9990 by the price you got in a. To see what are the maximum number of shares you can buy. This is the MAXIMUM - you can pick any number below that.
- whatever is left is cash.
f) Tell me why you bought this stock.
To do every day:
1) Add the price of the stock
2) Calculate the amount in CAD
3) If your spreadsheet does not automatically calculate how much your portfolio is worth, email me and I will fix it.
4) Add the opening and closing price every day and try to read the news to see what is going on.
To bring for next week:
Observe, Read News and find a stock you think is going to be excellent to invest in. Next week, you will tell me why you want to invest in it and will start investing in that as well.
If you have questions or trouble with the spreadsheet : email me at hello@explorerhop.com
Link to your portfolios: Carol, Jeanne, Peter, Padina, Miquela
Week 1: September 29, 2019
What an awesome first session!
Here is what we learnt today:
1) Discipline is the most important thing to be successful in trading stocks. A lot of people (including me) have lost money when we are not disciplined.
2) Saving: Before you buy something ask yourself 3 questions:
MISSION #1: Go shopping this week find something you want to buy. Ask yourself the 3 questions. If you answer even 1 of these questions with a "yes" - take a picture and post it on Instagram and tag us @explorerhop #explorerhop
Don't buy it. Feel free to tag me in everything and vent! It's a lot better than spending money on things you don't need, use or enjoy! )
3) Stock Market: We learnt the fundamentals of the stock market.
Stocks = Equity = Share Same thing, Different words!
A share is just a piece of a company. Think of the company as a whole pizza, and a share is just one slice of it.
Ticker - is a unique code for that company
Stock markets are where the stocks are traded. The biggest ones are NYSE and NASDAQ.
MISSION #2:
1) Download the free Yahoo Finance app on your phone. Or go to the Yahoo Finance website. (https://ca.finance.yahoo.com/
2) Think of a company you want to invest in. It can be ANY company that is listed on any stock market in the world.
3) Search for that company in the search box (here are the screen shots from the yahoo finance website)
4) Go to the Google Drive with your portfolio
5) Select your portfolio: Carol, Jeanne, Peter, Padina, Miquela
6) Add the information into your sheet every day and try to figure out what caused the prices to change.
7) I do check the sheets daily and will contact you if I have questions.
Any questions? Email me: hello@explorerhop.com
See you next week
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Welcome Message
Hello Everyone! I am so excited to see all of you tomorrow morning.
Everything you need will be communicated in this blog.
Just a few things to know:
1) Class Times: Saturday 9.00 - 9.50am - if you can't make any Saturday let me know as I can also teach you on Tuesday 6.00 - 6.50pm or Thursday 10.00 - 10.50am. Please let me know a week before.
2) Download Yahoo Finance app on your phones. It is a free app and is generally the easiest one to get market info.
3) Links to all your portfolios will be posted here tomorrow night. Please click only on your portfolio. They are google sheets so if you tend to work away from computers please download the Free Google Drive app as well so you can update it from your phone.
4) Bookmark this page so that you don't have to look up emails to find the information.
You don't need to bring paper or pens or anything because we have lots of them but more than that, I prefer if you listen, ask questions and understand instead of writing notes.