Table reading is one of the types of stock market analysis methods, in which it examines information such as the amount of buying and selling of real and legal shareholders, the volume of transactions, price fluctuations, the amount of supply and demand of real and legal shareholders, and such things, and predicts the future trend of the share price. will be
Using the board reading helps those interested in investing in the capital market to check the information in the board of a symbol in a short period of time and at the same time, not to miss the opportunities of buying and selling in this market. In order to learn this concept properly and fundamentally, we suggest you to participate in the fundamental analysis course of Revard Academy.
Important terms that you should know before starting to read the board
EPS: EPS of a company is equal to the amount of profit that company earns per one share. When the state of a company’s stock is examined by both investors and market analysts, EPS is involved, directly or indirectly.
DPS: DPS means the percentage of EPS that is distributed among shareholders. It should be noted that regarding the decision for EPS and how to pay DPS to shareholders, decisions are made in the company’s general meeting.
Closing price: The closing price of a share in a trading day is the average price at which the share was traded. Calculation of the final price is based on the volume.
Basic volume: The basic volume for a share is the minimum number of shares of the company that must be bought and sold during a trading day so that the price of that share can increase or decrease based on the ceiling of the range.
Floating shares: Floating shares are part of the shares of a public company that the shareholders are ready to offer. This part of the stock is expected to be tradable in the near future.
Buy and sell queue: When the supply volume of a share is more than its demand, the sales queue is formed and when the demand volume is more than its supply, the buy queue is formed for that share.
P/E: This ratio is the result of dividing the share price by its EPS amount. The higher the P/E ratio of a stock, the lower the fundamental value of the stock. Of course, there are exceptions and the opposite may happen.
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What is the information reference for table reading and what information does it provide us?
The first thing that people need to read the board is the information about the share transaction, which can be easily accessed on the website. Rahvard, which is well-known among capital market activists, is the official source of transaction statistics in Iran’s capital market. On the main page of Rahvard, you can access information about the capital market, some of which include:
Capital market indicators
These indices include the total stock market index, the total over-the-counter index, the total weighted index, and the industry index.
The most change of ownership
The largest volume of orders
Most transactions
The greatest effect on the total index
Familiarity with some important concepts of table reading
Power of buyer and seller
Buyer power and seller power represent the average number of shares that each real or legal code has bought or sold during a trading day, respectively.
smart money
Smart money is the money that is available to the major shareholders of the market. These people can usually predict or even create the trend of symbols better than others. Therefore, by following the actions of these people, it is possible to make a better decision about buying or selling an asset.
Suffering
Deliberately moving the price of a symbol in the direction of higher or lower prices, which is usually done by high-liquidity shareholders, is called suffering. A positive range means an increase in price and a negative range means a decrease in the price of a symbol.
Code to code
Sometimes we see in the trading board of the stock exchange that an unusual amount of a symbol is moved between several trading codes. This, which is called code by code, may indicate the beginning of an upward or downward trend in that symbol and can occur in the following four situations:
- Code by code from real to real
- Code by code from real to legal
- Code by code from legal to real
- Code by code from legal to legal
How to analyze shares using table reading
To analyze the symbols, use table reading, after entering the site, search for the symbol you want in the box at the top of the page and enter the page of that symbol. Here we consider the Fenval symbol as an example.
The last deal
In this section, information about the last transaction of this symbol can be seen. Information such as the closing price, the highest and lowest price at which the symbol was traded, the value and volume of transactions, the price limit of the symbol on that trading day, and the base volume.
Supply and Demand
Trading process
Real and legal transactions
Real and legal transactions, you can use the Fenval symbol based on the real or legal trader, the number of buyers, the volume of purchase or sale, the number of sellers, and the change of ownership.
DPS
Efficiency and liquidity
You can see the profitability and liquidity of the company for 3 months, 6 months, 9 months and 1 year
floating shares
The amount of free floating shares of the company, which is a percentage of the company’s shares that are available to the public, is shown in this section.
Filter writing and board reading
Filter writing is one of the most important and practical tools in reading the board. In this way, you can determine which shares have been traded more than the volume you want? Or in which shares he has bought more rights.
These filters provide you with refined information that you can use to make better decisions about buying and selling the shares you want.
On the website of Rahvard company, it is possible for users to write filters using the filter tool, and to use this method, it is enough to select the filter option from the tools menu. Then, you can write your desired filter.
For example, on the Filter screen, select Market from the Basis Information menu, and then select Basis Volume from the Market box that appears on the left. You can now set your bet to display a list of companies with a base volume greater than, equal to, or less than your desired value.
Also, you can choose a name for your filter on the website and save it as a template to use it later.
Table reading or technical analysis or fundamental analysis?
You may ask yourself, what is the difference between technical analysis and fundamental analysis? And basically, why should we learn the skill of tableau reading in addition to these methods?
Fundamental analysis examines the fundamental information of companies and requires spending a lot of time.
Technical analysis is a method that examines past data of price and trading volume.
Reading a sign is a method by which you can check the information on a symbol sign in a short time.
Each of the methods of fundamental analysis, technical analysis and panel reading have their strengths and weaknesses. Therefore, we recommend to reduce investment risk and increase the probability of your success, don’t be satisfied with only one analysis method and learn other analysis methods as well. For this purpose, you can participate in the training courses of the Academy.
Conclusion
Traders analyze a company’s stock in a short amount of time by examining information such as real and legal transactions, trading trends, volume of transactions, supply and demand, yield and liquidity of shares, and other such information. Of course, it is obvious that this method makes sense and is effective along with other analytical methods. For a deeper understanding of these concepts, we suggest you read the fundamental analysis training article.
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