Trade The Journey

Trade The Journey

Adding Microsoft Excel to your Financial toolbox

There are many tools available to you as an investor in Microsoft Excel. Recently, I took one of the classes offered through Udemy and I am about three weeks from completing the course. Before taking the course, I never considered using Microsoft for analyzing stocks also known as financial modeling. In fact, I did not see a reason to use Microsoft Excel, Excel is used for tables and making spreadsheets right? Wrong. Completing the exercises allowed me to see the power graphs can have in visualizing the data which is usually comprised of rows and rows of numbers. Looking at numbers for hours can be a rather unpleasant activity.

Most of the financial websites like Nasdaq for one, allow you to export the data to Microsoft Excel. Having the newer version of Microsoft Excel will help you in the long run. Right now I am paying $6.99 per month in fees for Microsoft 365 Office suite and this subscription can be used by multiple computers. Microsoft is the standard when applying for most jobs so learning the major functions of the Microsoft Office suite can be beneficial for you. How many people do you currently know that can create a pivot table? How many people do you know that even knows what a pivot table is?

Using Nasdaq as my data source, I was able to retrieve the data from the site pertaining to Amazon’s stock prices, ratios and a host of other data available. It exports the data to your spreadsheet and can be continuously updated. You can do this by clicking on the data tab and selected the query and connections. Here is a page to get you started.

There are other ways you can use Microsoft Excel to bring data from sites like Nasdaq to Excel in table format. Microsoft developed a stock and geography function under the “data” ribbon that can provide data needed for analysis. You can then use this data to perform graphs, analysis, and modeling needed to help you make a wiser decision in investing. Currently, I am using excel to track different countries in conjunction with the companies I am invested in. These features are especially useful if the company you are invested in also has international operations.

Amazon, as mentioned in one of the previous posts, gathers close to 30% of its revenue from international operations and I would venture to bet that China is one of their largest partners and customers at the time. Knowing what is happening within in China, should be of importance to you and your goal of making a profitable investment.

You can also use add-ins which can add new sources of data to your financial analysis. I added Prevedere to include some of the large-scale economic data the government and other organizations release as a gauge for the economy. Being that I just downloaded this add-in, I am still giving it a test drive.

You can use add-ins by activating the Developer tab. Right click on the ribbon and click to customize the ribbon. There you will see all of the available updates you can make to your ribbon.

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