I have recently started to learn about trading (udemy, babypips etc.) and I am very interested to learn more about the topic and of course how to make money from it. submitted by
I don't expect to get rich from it, I dont expect to only make profit and never lose.
BUT is it a realistic "dream" or rather goal, to live solely from forex trading?
Again I want to emphasize that I don't expect to be the forex king within weeks or months or maybe even years.
Thanks to all that commented and still going to comment.
You all gave me great insights on how you think about the topic and it made me really look forward on how far I can reach!
I am still on the very beginning, so I don't know how far I can come, but I will definitely try my best!
So du salziger Aktiensklave, ich weiß ganz genau was dein Problem ist. Du meinst in diesem Haus gibt es kein Forex Trading??? Du hast einfach nur Minderwertigkeitskomplexe weil die NY-Stock Exchange eine durchschnittliche Tagesliquidität von 214mil hat während die Forex counter mehrere Billionen von Dollar und Euro pro Tag nachweisen hahahahaha. Scheiß Aktiencuckolds, ihr seid alle nur mad weil ihr mit euren scheiß sink or swim Dow Jones us30 Aktien MINIMALE Profite macht, während die Forex Kings MAXIMALE Profite machen, selbst mit den scheiß afrikanischen Zar Währungen hahahahahaha also laber keine Scheiße das nächste mal nur weil der Scheiß Aktienmarkt weniger Action hat als dein Sexleben du Spast, ach und außerdem, weißt du warum deine Frau lieber ihren besten Freund durchvögelt als dich? Weil er Forex Trading betreibt. Schönen Tag dir noch du Kretin. submitted by
Hey, I am 20 years old and I have been interested in Forex since I was about 16. The first year I was extremely stupid and lost 1000$ because I decided to trade without proper practice on a demo account. This repeated itself for a while (losing money because I thought I had a fool proof system). Learned from my mistakes and started many demo accounts almost wiping them all out within a week from each other. By the time I was 19 I seemed to trade pretty consistently and averaged about 500 pips a month. This is data collected from about an 11 month period. After my initial loss of over 2000$ I decided I was ready to trade again and opened an account with 800$. Today the account is sitting at 3500$ after about 9 months of the initial investment. submitted by
I do understand that I am not the forex king nor do I even scratch the surface on the extensive knowledge some people have so my question to you is, can I sustain this growth rate. I use price action to trade and do not trade during the news to avoid conflict because I do not check the news so that would only hurt me if I traded during a big announcement (am I right?). 800$ to 3500$ is a huge ROI and I understand that it cannot be sustainable my whole life so what do you guys think my targets should be in terms of gains.
Another question I have is about getting X amount of consistent pips a month. If I can constantly get 1200 pips a month should I raise the lot size on my account. Trades that I have made have never gone below -300 pips except once when about 10 of my trades went to -500 pips which I closed and swallowed the loss. The maximum drawdown that I let my account go into now is around -250 pips per trade has never happened (haven’t reached in 7 months after the -500 pip loss per trade). I open at maximum about 10 trades and the average trade has a drawdown of about -70 pips if it even has a drawdown.
My trading method is extremely aggressive but after all my trading in forex I understand that sometimes shit just happens and you cannot always be right. Do you guys think it is ok to continue with my trading strategy? Each month I am roughly making about 1200$ USD now (with a potential loss of 600$ USD a month if I fail) . Do you think I should try to get around 6-9k with my strategy right now and just keep the same lot size or should I lower it right now? My risk to reward is about 2:1, so for every 100 pips I am potentially willing to lose I can make 200 pips. If I am making consistent pips per month how can I effectively get better at forex. I have tried to increase the amount of pips but realistically all I am doing is just opening multiple trades of the same currency so it doesn’t really teach me anything and I am just putting all my eggs in one basket.
Factset: How You can Invest in Hedge Funds’ Biggest Investment Tl;dr FactSet is the most undervalued widespread SaaS/IT solution stock that exists submitted by
If any of you have relevant experience or are friends with people in Investment Banking/other high finance, you know that Factset is the lifeblood of their financial analysis toolkit if and when it’s not Bloomberg, which isn’t even publicly traded. Factset has been around since 1978
and it’s considered a staple like Bloomberg in many wealth management firms, and it offers some of the easiest to access and understandable financial data so many newer firms focused less on trading are switching to Factset because it has a lot of the same data Bloomberg offers for half the cost. When it comes to modern financial data, Factset outcompetes Reuters and arguably Bloomberg as well due to their API services which makes Factset much more preferable for quantitative divisions of banks/hedge funds as API integration with Python/R is the most important factor for vast data lakes of financial data, this suggests Factset will be much more prepared for programming making its way into traditional finance fields. According to Factset, their mission for data delivery is to: “Integrate the data you need with your applications, web portals, and statistical packages. Whether you need market
, or alternative data
, FactSet flexible data delivery services give you normalized data through APIs and a direct delivery of local copies of standard data feeds. Our unique symbology links and aggregates a variety of content sources to ensure consistency, transparency, and data integrity across your business. Build financial models and power customized applications with FactSet APIs in our developer portal
”. Their technical focus for their data delivery system alone should make it stand out compared to Bloomberg, whose UI is far more outdated and complex on top of not being as technically developed as Factset’s. Factset is the key provider of buy-side portfolio analysis for IBs, Hedge funds, and Private Equity firms, and it’s making its way into non-quantitative hedge funds as well because quantitative portfolio management makes automation of risk management and the application of portfolio theory so much easier, and to top it off, Factset’s scenario analysis and simulation is unique in its class. Factset also is able to automate trades based on individual manager risk tolerance and ML optimization for Forex trading as well. Not only does Factset provide solutions for financial companies, they are branching out to all corporations now and providing quantitative analytics for them in the areas of “corporate development, M&A, strategy, treasury, financial planning and analysis, and investor relations workflows”. Factset will eventually in my opinion reach out to Insurance Risk Management a lot more in the future as that’s a huge industry which has yet to see much automation of risk management yet, and with the field wide open, Factset will be the first to take advantage without a shadow of a doubt. So let’s dig into the company’s financials now:
Their latest 8k filing reported the following:
Revenue increased 2.6%, or $9.6 million, to $374.1 million compared with $364.5 million for the same period in fiscal 2019. The increase is primarily due to higher sales of analytics, content and technology solutions (CTS) and wealth management solutions.
Annual Subscription Value (ASV) plus professional services was $1.52 billion at May 31, 2020, compared with $1.45 billion at May 31, 2019. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 5.0%. The primary contributors to this growth rate were higher sales in FactSet's wealth and research workflow solutions and a price increase in the Company's international region
Adjusted operating margin improved to 35.5% compared with 34.0% in the prior year period primarily as a result of reduced employee-related operating expenses due to the coronavirus pandemic.
Diluted earnings per share (EPS) increased 11.0% to $2.63 compared with $2.37 for the same period in fiscal 2019.
Adjusted diluted EPS rose 9.2% to $2.86 compared with $2.62 in the prior year period primarily driven by an improvement in operating results.
The Company’s effective tax rate for the third quarter decreased to 15.0% compared with 18.6% a year ago, primarily due to an income tax expense in the prior year related to finalizing the Company's tax returns with no similar event for the three months ended May 31, 2020.
FactSet increased its quarterly dividend by $0.05 per share or 7% to $0.77 marking the fifteenth consecutive year the Company has increased dividends, highlighting its continued commitment to returning value to shareholders.
As you can see, there’s not much of a negative sign in sight here.
It makes sense considering how FactSet’s FCF has never slowed down: https://preview.redd.it/frmtdk8e9hk51.png?width=276&format=png&auto=webp&s=1c0ff12539e0b2f9dbfda13d0565c5ce2b6f8f1a
FactSet’s annual subscriptions and professional services have made its way to foreign and developing markets, and many of them are opting for FactSet’s cheaper services to reduce costs and still get copious amounts of data and models to work with.
Here’s what FactSet had to say regarding its competitive position within the market of providing financial data in its last 10k: “Despite competing products and services, we enjoy high barriers to entry and believe it would be difficult for another vendor to quickly replicate the extensive databases we currently offer. Through our in-depth analytics and client service, we believe we can offer clients a more comprehensive solution with one of the broadest sets of functionalities, through a desktop or mobile user interface or through a standardized or bespoke data feed.” And FactSet is confident that their ML services cannot be replaced by anybody else in the industry either: “In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloading functions and portfolio analysis/screening capabilities offered. We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings. As a result, our products have become central to our clients’ investment analysis and decision-making.” (https://last10k.com/sec-filings/fds#link_fullReport
), if you read the full report and compare it to the most recent 8K, you’ll find that the real expenses this quarter were far lower than expected by the last 10k as there was a lower than expected tax rate and a 3% increase in expected operating margin from the expected figure as well. The company also reports a 90% customer retention rate over 15 years, so you know that they’re not lying when they say the clients need them for all sorts of financial data whether it’s for M&A or wealth management and Equity analysis: https://www.investopedia.com/terms/f/factset.asp https://preview.redd.it/yo71y6qj9hk51.png?width=355&format=png&auto=webp&s=a9414bdaa03c06114ca052304a26fae2773c3e45
FactSet also has remarkably good cash conversion considering it’s a subscription based company, a company structure which usually takes on too much leverage. Speaking of leverage, FDS had taken on a lot of leverage in 2015:
So what’s that about? Why were FactSet’s long term debts at 0 and all of a sudden why’d the spike up? Well usually for a company that’s non-cyclical and has a well-established product (like FactSet) leverage can actually be good at amplifying returns, so FDS used this to their advantage and this was able to help the share’s price during 2015. Also, as you can see debt/ebitda is beginning a rapid decline anyway. This only adds to my theory that FactSet is trying to expand into new playing fields. FactSet obviously didn’t need the leverage to cover their normal costs, because they have always had consistently growing margins and revenue so the debt financing was only for the sake of financing growth
. And this debt can be considered covered and paid off, considering the net income growth of 32%
between 2018 and 2019 alone and the EPS growth of 33% https://preview.redd.it/e4trju3p9hk51.png?width=387&format=png&auto=webp&s=6f6bee15f836c47e73121054ec60459f147d353e
EBITDA has virtually been exponential for FactSet for a while because of the bang-for-buck for their well-known product, but now as FactSet ventures into algorithmic trading and corporate development the scope for growth is broadly expanded. https://preview.redd.it/yl7f58tr9hk51.png?width=489&format=png&auto=webp&s=68906b9ecbcf6d886393c4ff40f81bdecab9e9fd
P/E has declined in the past 2 years, making it a great time to buy.
Increasing ROE despite lowering of leverage post 2016 https://preview.redd.it/lt34avzu9hk51.png?width=441&format=png&auto=webp&s=f3742ed87cd1c2ccb7a3d3ee71ae8c7007313b2b
Mountains of cash have been piling up in the coffers increasing chances of increased dividends for shareholders (imo dividend is too low right now, but increasing it will tempt more investors into it), and on top of that in the last 10k a large buyback expansion program was implemented for $210m worth of shares, which shows how confident they are in the company itself. https://preview.redd.it/fliirmpx9hk51.png?width=370&format=png&auto=webp&s=1216eddeadb4f84c8f4f48692a2f962ba2f1e848
SGA expense/Gross profit has been declining despite expansion of offices
I’m a bit concerned about the skin in the game leadership has in this company, since very few executives/board members have significant holdings in the company, but the CEO himself is a FactSet veteran, and knows his way around the company. On top of that, Bloomberg remains king for trading and the fixed income security market, and Reuters beats out FactSet here as well. If FactSet really wants to increase cash flow sources, the expansion into insurance and corp dev has to be successful.
Summary: FactSet has a lot of growth still left in its industry which is already fast-growing in and of itself, and it only has more potential at its current valuation. Earnings September 24th should be a massive beat due to investment banking demand and growth plus Hedge fund requirements for data and portfolio management hasn’t gone anywhere and has likely increased due to more market opportunities to buy-in.
Calls have shitty greeks, but if you're ballsy October 450s LOL, I'm holding shares
I’d say it’s a great long term investment, and it should at least be on your watchlist.