Hey guys, first time posting here, i recently started trading stocks, and i can assure you i'm still very new to this so excuse my dumb questions. But i came around a few problems which even though i searched the internet, still left me confused. So i'll quickly address some of my questions which i would appreciate to gather information/answers about. Okay so first off, i took a look at the SBUX stock which had an P/E ratio at 31.26. Does this mean i would have to pay 31.26 dollars, for the annual income of 1 dollar? Second off, i have made a bit of profit, which despite my excitement really surprised me. But here comes the catch, why does some of the stocks i buy lower my p/l even though they are going upwards on the diagrams, and have a positive percentage? I'm new to the forums, but if i find a third question i'll try to edit this post and attach it, if not, i'll just comment it down below. Hope you'll be able to solve my confusion surrounding these problems.
You really need to do a lot of reading to learn about fundamental analysis. Here is a link to get you started: http://www.investopedia.com/university/peratio/ There are many other free resources to educate you on these things. Google is your friend. As to your 2nd question, you need to look at your total basis cost (including commissions you paid) and compare that to your amount of profit. Good luck.
Welcome; because it takes more than a ''bit'' of a profit[ commissions, slippage, data errors] to rise P+L. Wisdom is profitable to direct. I just noted Buy1sell2, this website,that sure is a weak uptrend, in SPY, QQQ, SPXL, UPRO, TQQQ, ES, wondered if many are front running sell in May-hey. NOT a prediction; wisdom is profitable to direct,Scups.