“A good course/program for both new and intermediate traders. Provides a structured approach for anyone who wants to improve their trading. Helps to accelerate the start-up process into trading.” – Edward Choy
Thank you Edward for your kind testimonial, and we wish you all the best in your trading!
To see more testimonials, please visit https://synapsetrading.com/testimonials/
To find out more about our training program, please visit https://synapsetrading.com/the-synapse-program/
If you really want to know how a company is doing, you need to read their financial statements. It’s the fastest and most reliable way to know if a company is doing well or struggling to survive.
There are three different kinds of financial statements: the balance sheet, the income statement and the cash flow statement. First, let’s start with the balance sheet. This summarizes a company’s assets, liabilities and equity at a specific time.
Assets are broken down into two categories: current assets which include cash and highly liquid investment securities, and non-current assets which include any property buildings plants equipment & company software. Next, are the company’s liabilities which are also broken down into two categories: current liabilities which include bank loans accounts payable and other payables like payroll and accrued expenses and non-current liabilities which include any long-term loans or financial obligations. If you subtract the total liabilities from the total assets, you get the total shareholders equity.
Now, let’s move to the company’s income statement. This measures how much profit or loss the company has made over a specific period of time, which is why it’s also referred to as a P&L statement. First, you have revenue which is the amount of money the company makes by selling products or providing services.
Next, come cogs or cost of goods sold which is the amount spent producing or acquiring the products or services, including material and labor costs, subtract cogs from revenue and you’ve got gross profit. Then, come the operating expenses which include day-to-day things like marketing costs, indirect labor costs and so on, subtract that from gross profit and you’ve got operating income. Next, take that number and subtract all other miscellaneous expenses and you’ve got the company’s profit before taxes, subtract the taxes and you’ve got the net profit.
And that leads us to the third financial statement, the cash flow statement. This measures how much cash flows in and out of a company over a specific period because a company’s revenue and expenses can be delayed or deferred. This shows the actual cash flowing in and out of the company. First, you add together the cash flows from all operating activities including profit before taxes, trade and other receivables, and trade and other payables then you add the cash flows from investment activities along with the cash from financing activities. You then, compare the cash at the beginning of the financial year to the cash at the end, to determine if the company had a positive or negative cash flow and that’s how you read a company’s financial statements.
In our next video we’ll go even further and learn what these numbers actually mean.
“Course is very organised and comprehensive. Trainer was able to clearly response to students questions. ” – Lu Say Leong
Thank you Say Leong for your kind testimonial, and we wish you all the best in your trading!
To see more testimonials, please visit https://synapsetrading.com/testimonials/
To find out more about our training program, please visit https://synapsetrading.com/the-synapse-program/
Last month, I took a short 2 week break with some friends to Boracay Island in the Phillipines, and for those who are looking out for your next holiday destination, this could give you some good ideas! 😀
To see the full photo albums for this trip, please visit: https://synapsetrading.com/travel-log/
Boracay is a tropical island surrounded by stunning white sand beaches about an hour’s flight from Cebu or Manila just off the larger Philippines island of Panay.
For beach connoisseurs it competes with the best beaches of more popular destinations such as the Caribbean and the South Pacific as well as neighbouring Thailand, Malaysia and Indonesia. For those wanting to just lounge around and top up their tan, beach-front hotels usually have lounge chairs set up just a few steps away from the hotel entrances.
The more active will appreciate water sports and activities such as sailing, wind surfing, snorkelling, diving and jet skiing. The fun in Boracay doesn’t end when the sun sets. Boracay night-life pulsates with many bars and restaurants serving food, drink and fun until dawn.
Because these 4 drinks add up to about $10 SGD
Double-check to make sure they’re alive
Mutant prawns
After 3 beers and 2 cocktails
After a few more beers…
Not photo-shopped btw lol
Let the kite drag you out to sea…
Singapore, Sweden, Korea, Canada, Australia
Ship-wrecked
Preparing for dinner later
Harder than it looks
Trying to feel young again 🙂
Looking for some good setups 😉
Have to trade a bit to cover the cost of the holiday
A few years back, if anyone had told me that travelling the world was just a childhood pipe dream, I would have nodded in agreement. But after learning the truth about passive income, I realised that it was the only way to break free from the rat race and accumulate wealth more quickly that I ever imagined.
Sure, there will be many skeptical people who say that this is too good to be true. I understand that this might be out of their comfort zone, and all I can say is that once you have experienced it, there is no turning back.
Till then, stay tuned for the next holiday destination! 😀
P.S. Once again, to see the full photo albums for this trip, please visit: https://synapsetrading.com/travel-log/
Enjoy! 😀
To be a successful value investor in the stock market, you need to know how to identify which stocks are the most valuable. But the most valuable stocks aren’t necessarily the ones that are performing the best. In fact, the real goal is to find stocks with strong intrinsic value that are currently under valued by the market. So how do you identify these gems?
First, find the right type of business.
In general, you should always start with what you know. For instance, if you’re familiar with the technology sector, you may want to look there. Just make sure that the industry isn’t experiencing long term challenges. This will help you avoid eroding profits in the future.
Next, look for a company with a strong and sustainable competitive advantage. For instance, if a company has a patent on an emerging technology, this could help them for years to come. Finally, make sure the company has strong growth potential and a clear strategy for the future. Is there a growing demand for their product? Do they have the infrastructure necessary to expand?
Questions like these can help gauge their future success.
The second way to identify intrinsic value is to study a company’s management team.
Do some research.
See if they have the proper credentials and make sure that their skill sets are well suited for the current business climate and of course, look at their track records. Were they successful in their recent positions or did they leave those companies weaker than before? And, are they transparent with their shareholders? Executives who are open to new ideas and willing to adapt are generally more capable of overcoming future challenges.
Next, have they laid out a clear plan for future growth if not you should be concerned and how are they paid? Do they receive a flat salary or is it performance-based? And do they own a significant stake in the company? Executives who are themselves invested in their company’s success are more likely to put their shareholders first.
The third and final way to identify intrinsic value, is to analyze the company’s financial numbers.
But this topic requires a lot of attention, which is why we’ll cover it in our next video reading financial statements.
