Guide .

Is a 1 dollar stock cheaper than a 10 dollar stock?

The price of a single share and the total size of a company are different. Let's look at the price per share and the number of shares together.

When can I trade US stocks?

Day, Pre, Regular, and After sessions—what are these times? Let's learn the names of the four sessions and their KST schedules.

Why was my order executed at a different price than the current price I saw?

The last traded price shown on the screen may differ from the price at which you can buy right now.

Why does the stock price fall even when trading volume is high?

High trading volume and a significant price increase are two different things.

What do the bars and wicks on a chart mean?

A single candle contains the opening, closing, high, and low prices for a specific period.

What do support and resistance refer to on a chart?

This refers to finding areas where the price frequently stopped or reversed. Floors and ceilings are not guaranteed.

Why is the 1-minute chart rising while the daily chart is falling?

It may be a rebound on a small scale, but a downtrend on a larger scale. Let's change the timeframe the chart covers.

What do breakout and pullback mean?

These are terms that describe whether the price crossed a level where it was frequently blocked, or if it pulled back after rising.

What are the moving average and VWAP lines on the chart?

This is a line that averages several prices. The line changes depending on which prices are reflected and to what extent.

What should you decide before looking at a stock?

Write down why you became interested and what facts would need to change for you to reconsider.

Why does the stock price fall despite good news?

A positive factor means news that could have a favorable impact, not a guarantee of a price increase.

Offerings and ATMs are ways for a company to raise capital.

A company announcing it may sell new shares is different from actually selling them and receiving the money.

Warrants and convertible bonds can become stocks later?

Do not just look at the current number of shares; examine promises that could turn into shares in the future.

A reverse stock split is the consolidation of shares.

Even if the number of shares decreases and the price per share increases, your assets do not increase based on that calculation alone.

Why do trading halts occur and when do they resume?

A trading halt is a temporary suspension of trading. Check the reason for the halt and the resumption information separately.

Does a high short interest necessarily mean the stock price will rise?

The volume traded via short selling today and the number of shares yet to be covered are different figures.

Using WAPE

What should you look at first when a stock appears on the scanner?

A scanner is a tool for finding stocks that have undergone changes. It is not a definitive guide for buying.

Using WAPE

How can I use paper trading for study?

After practicing with virtual money, reflect on why you made your choices rather than focusing on the results.

Why are the names EMA and SMA, or moving averages, different?

Both are averages of prices. They differ in how much weight they place on recent prices.

Does a high RSI mean it is expensive, and a low RSI mean it is cheap?

RSI is not a price tag for a company, but a number that compares the strength of recent upward and downward movements.

What are the two lines and the bars in MACD?

It is a tool that looks at the difference between a fast average and a slow average. It is easier to read by dividing it into three parts.

Does the stock price rise when the Bollinger Bands narrow?

An indicator where the bands around the price widen or narrow based on the magnitude of recent movements.

ATR, a figure that measures how much a stock price fluctuates.

It is an indicator that shows the range of recent price movements, not whether it will rise or fall.

OBV, what is the line that adds and subtracts trading volume?

It is an indicator drawn by adding trading volume during periods of price increases and subtracting it during periods of price decreases.

How do you interpret the statement that trading volume is several times higher than usual?

Even with the same 5x multiple, what it is compared against matters.

What is a gap where the chart appears to break off?

This is when a gap appears between the previous price and the next opening price.

How do you analyze the first 5 minutes after the market opens?

This is an exercise in comparing subsequent movements based on the high and low prices within a pre-determined time.

How do you draw a trendline?

A line that makes it easier to see price direction by connecting similar highs or lows.

Double tops and double bottoms look like two mountains or two valleys.

It looks like it turned back twice at a similar height, but you cannot determine the next direction based on the shape alone.

What do Fibonacci lines indicate?

These are reference lines that divide the rise and fall intervals I selected into specific ratios.

Why does the slope look different on the same chart?

The shape changes depending on whether the vertical axis is drawn based on price difference or percentage change.

What is an adjusted stock price that makes past stock prices appear different?

After a stock split or reverse split, chart prices are sometimes adjusted to make it easier to compare the past with the present.

Is it safe to assume that a high volume in the order book means it is secure?

The order book shows pending orders. It is different from the list of completed trades.

Divergence—are the price and the indicator moving differently?

This term is used when the stock price and technical indicators show different trends.

Does saying it held up better than the Nasdaq mean it made a profit?

Calculate the changes in your stock and the changes in the benchmark separately.

If a method worked well in the past, will it work well in the future?

Backtesting, which involves applying methods to past prices, has pitfalls that are easy to overlook.

What should you look into first for a Nasdaq stock you are seeing for the first time?

It is easier to start by checking the company name, what it does, and what kind of stock it is.

Are Nasdaq and Nasdaq100 the same thing?

An exchange is a marketplace, while an index is a number calculated by aggregating the movements of specific stocks.

What is the distinction between Nasdaq Capital and Global markets?

There are different segments within Nasdaq with different listing criteria. These are not ratings that guarantee profit or safety.

What are ADRs and ADS, foreign stocks traded in the US?

Learn about the differences between depositary receipts—including underlying share ratios, fees, and exchange rate risks—and standard listed stocks.

How do you read news about IPOs, offering prices, and lock-ups?

The initial offering price of a stock may differ from the price at which it trades in the market.

What is the structure of the SPAC, acquisition, or unit?

Understand the lifecycle of a company searching for a merger target, as well as the interests regarding redemption, dilution, and the sponsor.

10-K and 10-Q: Where do you start reading a company's report card?

A report explaining what a company did and how much it earned over a year or a quarter.

The 8-K is a document that announces important company news.

It is a company notice board used when events like earnings releases, major contracts, or executive changes occur.

For 20-F and 6-K, the names of reports for foreign companies may differ.

Not all foreign companies listed in the US use 10-K or 10-Q.

Connect corporate financial statements starting with revenue, profit, and cash.

This is a method for reading the income statement, balance sheet, cash flow statement, and statement of changes in equity as a single story about a company.

How many months can the company survive on its cash?

Cash runway is an estimated capacity calculated based on current cash and the rate at which cash is decreasing.

Why does the stock price fall when earnings are good?

Beating revenue and EPS estimates is not enough. Read the guidance, quality of earnings, and market expectations together.

13D/13G: Who owns a significant amount of company stock?

This is a report from a major shareholder. The document filed today may not reflect purchases made today.

13F, a report showing which stocks an institution held

You can view the holdings of large investment firms, but it does not show real-time trading.

How can I check news about an executive buying stock via Form 4?

First, distinguish whether the increase in shares is due to direct purchases or company compensation.

Are clinical success and FDA approval the same thing?

The stage of testing drugs on humans and the stage of receiving sales approval are different.

The current number of shares and the number of shares that may increase in the future are different.

Try writing down the issued shares, outstanding shares, and potential shares in separate columns.

For a 2x ETF, is the monthly return also exactly 2x?

Targeting 2 times the daily change is different from 2 times the monthly result.

Nasdaq, NYSE, AMEX: What is the difference?

The exchange name next to a ticker indicates the market where the stock is listed. It is not a report card for the company.

What kind of exchange is NASDAQ?

It is a market operated by electronic trading. It does not mean it is only for tech stocks or the same as NASDAQ 100.

What kind of place is the New York Stock Exchange (NYSE)?

It is an exchange familiar from scenes of ringing the bell in the news. It combines electronic trading with on-site operations.

Is AMEX an over-the-counter (OTC) market?

NYSE American, associated with the name Amex, is a separate exchange. Distinguish it from over-the-counter (OTC) stocks.

Is OTC (over-the-counter) trading done after the market closes?

Over-the-counter (OTC) means outside the exchange. It is a different category from after-hours trading.

Is a dark pool an illegal trade conducted in secret?

This refers to a trading system that does not disclose orders before execution. It does not mean there are no transaction records.

How do you sell shares you do not own in short selling?

It is usually easy to understand as the sequence of borrowing shares, selling them first, and then buying them back later to return them.

What are short selling borrowing costs and available shares?

There are conditions and costs for borrowing stocks. Do not extrapolate numbers from one screen to the entire market.

Is all insider trading illegal?

You must distinguish between public transactions by executives and illegal trading using material non-public information.

What are executive scheduled trades and 10b5-1 plans?

It is a rule regarding a plan that predetermines trades. You cannot determine the judgment made today solely based on the title that a sale occurred today.

Can we trust quotes moving during LUDP or M halts?

Quotes and expected auction prices during a halt are not promises of execution. Learn why you should not jump to conclusions about differences in displays by brokerage firms or the direction of resumption.

What do S&P 500, Dow 30, and Nasdaq 100 show?

An index is a number calculated from the movements of various stocks based on a set of rules. If the constituent stocks and their weightings differ, the direction can vary even on the same day.

How do SOXL/SOXS and 3x semiconductor products move?

You should not interpret a daily +3x or −3x target as a promise of long-term returns. Examine cases where both products incur losses and check items for domestic investors.

What are the leverage ETF pre-training and completion number?

These are the education and registration procedures to check when trading overseas leverage ETPs through domestic brokerages. Distinguish between basic education and separate requirements for single-stock products.

When exchanging dollars, does a higher exchange rate preference mean there are no costs?

The base exchange rate on the screen may differ from the rate applied to you. Read the exchange spread, preferential rate, and automatic exchange conditions separately.

Why is my KRW profit low even though US stocks went up?

Dollar returns and foreign exchange gains/losses work together. Calculate stock prices and exchange rates separately and verify the actual costs.

Through what channels does economic news move the Nasdaq?

Learn how news on inflation, growth, and interest rates is transmitted to corporate earnings and stock values. Start by examining why indices may fall even on good news.

Why does the Nasdaq get nervous when CPI and PCE are released?

Distinguish between consumer prices and the Fed's inflation target. This is how to actually read headline vs. core, month-over-month vs. year-over-year, and base effects.

If the PPI rises, do the CPI and stock prices follow?

The Producer Price Index tracks the selling prices of businesses. It distinguishes the conditions under which price changes at the production stage are passed on to consumers and corporate profits.

Is high GDP growth good for the Nasdaq?

Distinguish between real GDP, annualized rates, and revised figures to read the substance of growth. Growth driven by consumption and growth driven by inventory accumulation can be interpreted differently.

What changes when the Fed raises or lowers interest rates?

Read everything from FOMC decisions to the dot plot, press conference, and quantitative tightening. Connect the reasons why stock prices might fall even when interest rates are cut.

How do rises and falls in crude oil prices transmit to the Nasdaq?

Start by finding the reason why oil prices moved. The impact on inflation and corporate earnings varies depending on supply disruptions, demand recovery, and economic recession.

Does the Nasdaq follow when Bitcoin rises?

Distinguish between phenomena that move together and cause-and-effect. Learn about common financial conditions, exposure of crypto-asset companies, and the limitations of interpreting weekend prices.

Why do employment, unemployment rates, and wages move the stock market?

Distinguish between non-farm payrolls, the unemployment rate, wages, JOLTS, and jobless claims. This is why market interpretations differ regardless of whether employment data is strong or weak.

The reason for placing US Treasury yields and the dollar next to the Nasdaq

Distinguish between the meanings of 2-year and 10-year Treasury yields, real interest rates, and dollar strength. Do not determine the direction of stock prices based solely on the fact that interest rates have risen.

From retail sales and PMI to release times: the order for reading economic news.

Connect and read consumer data, corporate surveys, and policy news. Check everything at once, from KST conversion to estimates, revisions, and post-release volatility.

How do you compare whether a stock is cheap using PER, PSR, and PBR?

Let's learn the calculation methods and pitfalls of the three multiples that compare price to earnings, revenue, and net assets.

How do EPS, BPS, and ROE differ from each other?

Distinguish between earnings per share, net assets per share, and return on equity. Also examine the impact of the number of shares and share buybacks.

Is it a company with good growth rates and profit margins that sells well and retains profit well?

Connect YoY, QoQ, gross profit margin, operating profit margin, and net profit margin, and read the differences by business segment.

Why you should look at cash flow alongside net income

Read operating cash flow, capital expenditure, and free cash flow, and understand cash shortages in profitable companies.

Debt-to-equity ratio, current ratio, and interest coverage ratio: assess the capacity to endure.

The size of debt, short-term solvency, and interest burden are different questions. Start by verifying the calculation formulas and units.

When should you buy to receive dividends?

Distinguish between the declaration date, ex-dividend date, record date, and payment date, and learn about U.S. T+1 settlement and special dividend exceptions.

Is a high dividend yield safe?

Analyze dividend yield, payout ratio, and cash flow alongside the ex-dividend date. Also, examine the risk of cuts behind high yields.

What if the numbers on the stock detail screen do not match?

Check the order for reading financial and investment indicators, dividends, and target prices, as well as calculation differences by provider.

How do you read the actual, forecast, and previous values on the economic calendar?

Read the schedule as a checklist rather than a trading signal. Distinguish between countries, units, adjustments, and release times.

What are the ISM, PMI, and Philadelphia Fed indices?

Read the direction of the economy through corporate surveys. The 50 of the PMI and the 0 of the Philadelphia Index are based on different criteria.

Differences in employment news: ADP, NFP, JOLTS, and jobless claims

New jobs, unemployment rate, job openings, layoffs, and wages are not the same indicator. Read employment releases as a group.

How robust are retail sales, PCE, and U.S. consumption?

Distinguish between core retail sales, consumer spending, and the PCE price index, and separate sales growth from price effects.

Why are consumer sentiment and inflation expectations important?

Read the University of Michigan and Conference Board surveys, distinguishing between preliminary and final releases, and between 1-year and long-term inflation expectations.

The impact of new and existing home sales on the US stock market

Distinguish between contracts for new home purchases and completed existing home sales, and read the path leading to interest rates and consumption.

Read the schedules and announcement times for Korea and the U.S. carefully to avoid confusion.

Distinguish between the Bank of Korea and the Fed, South Korea's GDP and US GDP, and market holidays and earnings release times.

Why preferred stocks should not be viewed solely as stable, high-dividend investments

Understand dividend and liquidation priorities, cumulative vs. non-cumulative, and call, conversion, and interest rate risks, as well as terms by series.

Class A, B, and C shares of the same company have different rights.

Distinguish between common stock, dual-class shares, and economic interest, using the Alphabet case. Class names are not standardized.

Why you shouldn't buy US REITs based solely on monthly dividends.

Learn about the 90% distribution requirements for REITs, equity vs. mortgage types, FFO/AFFO, and risks related to interest rates and vacancies.

Acquisition and M&A announcements: why do stock prices move differently?

Distinguish between acquisitions and mergers, cash vs. stock consideration, and tender offers vs. deal termination risks.

100

How are units and warrants different from stocks?

Calculate the differences between package securities and stock purchase rights, including exercise costs, expiration, calls, and dilution.

101

How is the capital gains tax on US stocks calculated for South Korean residents?

Learn about annual profit/loss aggregation, the 2,500,000 KRW deduction, the 22% tax rate, KRW conversion, and filing in May of the following year.

102

With US dividend tax at 15%, is the filing in Korea complete?

Distinguish between tax treaties/W-8BEN, domestic withholding tax, global income taxation on financial income, and foreign tax credits.

103

SEC Fee, TAF, and currency exchange costs: expenses incurred in US stock trading.

Distinguish between taxes and fees, and check selling regulatory costs, brokerage commissions, currency exchange, and product costs.