Financial Metrics

 

What are financial metrics ?

• Are the tools or indicators used to analyze the finance status of the company.
• To analyse a stock we use financial metrics. 

Some of the  metrics used in stock market are

• P/E Ratio (Price to Earnings)
• What you pay for every $1 of company profit.
• Stock price/Earnings per share i.e 10/1= 10
• High P/e ration means stock is overvalued.

• EPS (Earnings per share)
• Profit divided by the number of shares
• Profit/shares

• Divided Yield
• The yearly cash payout as a percentage of the price
• Yearly payout/Price.

• Revenue Growth
• How fast the business is growing.
• (New- old) /old.

• Price to Book(P/B)
• Price -What investors pay for one share
• Book Value- Company assets /debts.
• Price per share/Book value per share.

• PEG Ratio (Price compared with growth)
• P/e / Earnings growth rate.
• if PEG = 1 price and growth are in balance.

Will keep updating the list.

Halal App :  Zoya

Charting software :  TradingView

Screener :  Finviz, TradingView

Brokerage Account :  E-tore,  Interactive Broker

Brokerage Account

• An investment account held at a licensed brokerage firm. 
• A trading account which one uses to trade or invest in the securities in the finical market.
• Allows you to buy, hold and sell stocks, bonds or ETF.

My Take:

• Cash Account is account one can only trade with actually cash you have deposited. 
• One can have a individual or joint account.
• Research the firm that suits you.
• Have used E-tore in the beginning for basic understanding to trade.
• IBK -Interactive brokers is the one i am using for quite sometime as its very user friendly platform.

Halal App :  Zoya

Charting software :  TradingView

Screener :  Finviz, TradingView

Brokerage Account :  E-tore,  Interactive Broker

Screener

 

A screener is a tool that helps you filters out large list of stocks that match your criteria.

Screener helps you to find companies based on  price, volume,  sectors, market-cap, earnings, p-e ratio and other predefined requirements.

Stock screeners helps you to filter, sort and analyze stocks.

• Descriptive factors: Price, Average volume, Industry, Sector

• Fundamentals factors: EPS growth, PE ratio, Revenue growth, Dividend yield, Inside ownership, debt-to equity.

• Technical factors: Moving Averages, RSI, ATR, Volatility.
• News

Free screeners :

• Yahoo Finance
• Finviz
• TradingView

The screener I use is FINVIZ. The free version.

https://finviz.com/ . Then click on screener.

After getting the list of companies, then I do check if the stock is halal from zoya app.

https://zoya.finance/

Charts

 Chart:

• Chart basically has two axis i.e  x axis and y axis.
• X-axis is time.
• Y -axis is price.
• Stock chart is a relationship of  price and time.
• These charts show us how the price swings.
• In simple words these charts show us how much a share cost and how many people are buying and selling.
• There are different types of charts 
• Candlestick chart
• Bar chart.
• Line chart.

Timeframe:

• Charts can be viewed in different timeframe i.e 1 year, 6 months,  3 months, 1 month, 1week, 1 hour, 1 minute.
• I view in Weekly - daily - 4 hour -1hour  - 30 minute -5 minute
• Long term  - Quartly- yearly- monthly

My Take:

• View each stock in daily and weekly view (candlestick)
• Identify if its a uptrend with higher highs and higher lows.
• Then move to 4hr to 30 minute timeframe.
• Identify the support and resistance level.
• Look for the volume its more than 500k.
• Move to 15 minute  for entering an order.

   

Charting software

•  TradingView 

    

My reference :

• https://youtu.be/UU4ZQF-X9jE?si=0j0VZEI_IbkgyWFg
• https://youtu.be/C5E5SlMzMMM?

Stock VS Halal Stock

 

Stock

• Unit of ownership of a company.
• With no restrictions what type of a company or its financial status.   

Halal Stock

• Unit of ownership of a company but comply with Shariah Law.
• Business
• Which avoids prohibited industries 
• Alcohol  
• Tobacco
• Gambling
• Pork
• Weapons 
• Interest bearing products
• Adult entertainment.
•  Fiance
• Debt /market value of equity(36 months Avg)< 33%.
• Accounts Receivable/ market value of equity <49%
• Cash & interest bearing /market value of equity < 33%.
• Impermissible income < 5% 

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APP I use to check if the Stock is Halal:

            

            Zoya App.

        

WHY

Assalam Alakikum

Welcome to my personal journal, where I will be documenting my path to Halal trading. I'll be sharing my learning process-build on independent study, insightful articles, books, blogs and the best of YouTube.

I am normal housewife not a great trader nor a professional trader nor any trading influencer in today's world. In my 50s and looking forward this stage of life to learn, grow and fully engage with the world of trading around me.

Three years in, through every profit and loss my committed to learning remains. Passion, patience and dedication is what keeps me in this games still.

Insha Allah. Trusting Allah's plan in this journey.