My Investing Club has updated their short bias trading education program to include lessons on how to read filings.
Amateur traders can now learn to read and understand SEC filings, which is an essential skill that will help them choose what stocks to pick. In their updated mentorship program, ‘My Investing Club’ teaches traders how to use SEC filings such as the 10-K and 10-Q to determine whether or not to invest in a company.
For more information, visit https://myinvestingclub.com
MIC’s latest announcement coincides with an article published in the Wall Street Journal about the benefits of understanding the contents of SEC filings for both beginner and professional traders. According to the report, making stock picks based on actual data is the best way to ensure that the choices will pay off, but many traders are intimidated by the sheer volume of data they have to go through to make the right decisions.
At MIC, members are taught how to speed-read through SEC filings. By being aware of where to look and what to take note of, traders can use the data to make stock picks without spending countless hours going over the filings.
Six SEC filings are most useful for traders: 10-K, 10-Q, DEF-14A, 8K, 13D, and 13F. The 10-K (annual report) and the 10-Q (final quarter report) can be considered general reports of the company’s finances. This gives traders an overall idea of how the company is doing, what challenges it has encountered, and how stable its financial structure is, explains MIC.
The DEF-14A and 8K reports give traders a more in-depth look at the company because these reports are related to the shareholders and executives. They give traders an idea of how the company compensates its top management and investors. If their bonuses are tied to revenue growth, that might create a strong incentive to keep the company from making too much to avoid paying unnecessary bonuses.
Lastly, the 13D and 13F reports indicate the stability of the board of investors, says the company. These reports are filed for investors who own at least 5% of the company’s shares or have invested a minimum of $100 million. This is important because if influential shareholders start to throw their weight around, it can easily destabilize the company’s revenue.
More information is available at https://myinvestingclub.com