How to Read Stock Information for Trading

You may feel overwhelmed when looking at a stock details page. Let's look the lesson to learn how to read and the understand the page.

Introduction

On a stock details page, you can decide whether you want to buy or sell. It provides you with the information you need to make an investment choice. If you’re new to trading, check out the lesson before making your first trade.

Step 1: Know the Company

You should know four basic elements of company information:

1. Symbol; 2. Name; 3. Exchange; 4. Industry and Company Profile.

  • Ticker/symbol: This is an abbreviation representing a company, usually consisting of 1-5 letters. If you know the ticker for your desired stock, enter it into the search box. The last letter, known as a modifier, can help you identify a stock.
  • Exchange: If a company wants to get listed, the choices are usually Nasdaq/NYSE/AMEX. For example, the company below is listed on NYSE where most of the companies are large with market caps.

  • Company Profile: here you can find a brief introduction of a company—main business scope, history, headquarters, founder, etc. You will also find which sector/industry a company belongs to.

Step Two: Financial Data to Evaluate the Company Performance.

Generally, investors can gain valuable information from stock details to help them evaluate whether they are interested in trading a particular stock. If you want to know how well a company in a certain industry is doing, financial metrics, like P/E, EPS, Market Cap, etc., can be a good measurement.

Tip: If you are unsure what the data represents, check the information logo to learn more.

Step Three: The Stock Price Chart

Now, you probably have a good idea of whether or not the company is a good investment choice for you. The question comes to: how much should you pay if you want to buy a share?

Last Price is the price of the most recent transaction.

For example, a stock price 14.44 below means people are buying and selling at 14.44 for this stock at the time you see it.

All price updates in the chart are based on the last price. That is to say, the price chart is all about what happened in the past—it cannot tell you what the price will be next, but you can do your own homework to predict the future price base on price patterns. For example, many investors use technical indicators as a supporting too l to decide when to buy/sell.

By changing the time interval from minutes to years, you can have a broader view of how the price behaved in the past.

Step Four: See What Others Are Talking About

If you are not sure about your selection, listen to what others have to say. By hearing other voices in the community, you may find inspiration for a trade.

Viewing the Feeds

You can check the feeds to learn what others are discussing about a particular stock in Webull community. You can also share your own ideas about the stock here.

Step Five: Check the Third Party's Analysis

side from the ideas of other investors, you can also check the analysis results by the third party. Like the picture below, the third party's result is "Buy," which means the 51 analysts think the stock is worth investing in. However, the analysis information is for reference only and does not constitute an investment recommendation.

The Bottom Line

Simply put, it’s better to know the company, evaluate the company’s financial data, check the stock price chart, see what others are talking about, and check the third party’s analysis on the stock details page to ensure you’re as informed as possible before you make your trade.

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Lesson List
How to Read Stock Information for Trading
2
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3
Predict Stock Sentiment on Webull
4
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5
How to Find Active Stocks with the Most Active list
6
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7
How to Trade OTC Stocks
8
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9
How to Find Companies with Corporate Actions?
10
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11
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