Day Trading Stocks: Top 5 Tips Day trading can be intimidating for many investors, but finding quality day trading stocks isn’t quite as stressful. If you know what to look for, you can find gre
MACD Explained Millions of traders use the MACD indicator to time their entrance and exit points. It’s a favorite among swing traders because it signals when a stock like those is about to shift
More than $49 trillion in assets are kept in global regulated open-end funds, according to data from the Investment Company Institute. That said, roughly $21.8 trillion of total net assets are held in
If you’re interested in receiving passive income from the stock market, then dividend stocks might be the right choice. To attract investors some companies will pay a cash dividend as a way for
If you speak to most investors, they’ll tell you that the fundamentals matter. The price of a stock can only tell you so much. Is the company growing its revenues? Is its EPS rising? How about i
Analysts and investors can get a better grip on the financial health of a company by reading its quarterly and annual earnings statements. The profit margin (aka net income margin) is one of the most
Debt to Equity Ratio: Explained Leverage is a necessary yet risky aspect of corporate structure. For this reason, analysts and investors pay close to attention to a company’s debt to equity rati
Net Present Value: Explained Management’s main job is to create value for shareholders. How do they know if a new project will create or destroy value for the firm? Net present value serves as a
Earnings Before Interest and Taxes: Explained Analysts use different methods of evaluating company performance. Earnings before interest and taxes (EBIT) is an accounting measure that describes core p
What Are Profitability Ratios? Companies today produce a tremendous amount of revenue, and consequently expenses. Profitability ratios express these numbers in a simple and easily comparable format. P
Cash Conversion Cycle: Explained The cash conversion cycle estimates the time is takes for cash to flow through a company. Sales are the beating heart of any business, but the sales process is complex
Oligopoly: Explained Before entering a business space, one measures risk and competition. An oligopoly offers tremendous upside potential with limited competition. What Is An Oligopoly? Unlike a monop
Equity Multiplier: Explained Like other financial leverage ratios, the equity multiplier measures asset financing practices. However, this measure offers insight into future earnings. What Is The Equi
Stop-Loss Orders: Explained To traders, profits are the lifeblood of business. Without them, a business dies and traders leave the market. Successful traders use stop-loss orders to protect profits. A
Payout Ratio: Explained As a shareholder, ever wonder how much of the company’s income returns to you? The payout ratio shows precisely that. Investors use this measure when making investment de
Operating Income: Explained Analysts and investors measure companies in various ways, many relating to the amount of profit produced in a given time. Operating income measures the performance of the c
Limit Orders: Explained Order types are an edge that trades use in the market. A limit order guarantee trade execution at predetermined prices. This mitigates risk for sophisticated traders. What Is A
Accounts Receivable Turnover: Explained Like banks, companies extend credit to consumers. This allows for the immediate purchase of goods with payment in the future. Accounts receivable turnover measu
Cyclical Unemployment: Explained Business cycles are an unshakable part of world economies. Cyclical unemployment trends repeat over time and affect everyone in the workplace. What Is Cyclical Unemplo
Market Order: Explained Different order execution types exist in the market. This is to compensate for different trading styles. Often the cheapest is a market order. What Is A Market Order? A market
Simple interest exists in most short-term loans. such as a car loan. The payment calculation varies from a compound interest loan. Understanding the difference helps a borrower budget appropriately. W
Management decides how to spend surplus income in a number of ways. Retained earnings shows investors how their profits drive future growth of the business. After all, as part owners of the corporatio
Conflict theory is an age old phenomenon that some believe still rules culture today. Regardless of opinion, how can one position themselves for success with or without conflict theory? What Is Confli
Imagine if you earned the same salary today but lived in the time of your grandparents. There’s a good chance that you would be the wealthiest person in the neighborhood, but how can this be? Pu
A monopolistic market or monopoly market is significant for several reasons, one being it is so rare. In the past, companies experienced vast profits in such an environment. This all but ended with
A leverage ratio is a simple measure of a company that tells a complex story. One cannot properly evaluate a firm without it. What Is A Leverage Ratio? A leverage ratio is a expression of a fir
What Is Inventory Turnover? A company sells products to its costumers in hopes of turning a profit, this is business 101. However, what if the rate at which a company sells inventory gave analysts a b
Gross Profit Margin: Explained Like many other financial ratios, gross profit margin helps determine the underlying health of a company. However, this metric has immediate implications for the stock p
New business ventures ultimately grow companies and provide shareholders a return on their investment. For this reason, financing decisions make or break a company’s future. This article discuss
Many individuals start businesses, however, few achieve profitability. Many costs exists in starting and maintaining operations. The cost of goods sold (COGS) is among the most important measurement o
What Is Gross Profit? Income statements show gross profits at the very top of the page. That’s why you often hear gross earnings referred to as “top-line earnings”. The figure show
What Is the Net Income Formula? Net income – also known as net earnings – tells investors how much income a company generated over a given period. In order to calculate net earnings, we ne
What Is Gross Income? Receiving a paycheck is great, but how does one measure their salary income versus what they take home? Gross income measures the total amount of money earned over a given period
The weighted average cost of capital (WACC) is an umbrella measure of risk, valuation, and expected return. Often misunderstood, this valuable metric provides tremendous insight into a company. What I
Individuals own stock for a variety of reasons, most notably to accumulate wealth. Owning stock gives investors partial ownership of a company, which comes with responsibility. One of these responsibi
Investors and analysts use certain accounting measures in measuring the risk of companies. Financial statements are sometimes convoluted, or even too in depth for basic research. For this reason, cert
Shareholder’s Equity (SE) is a financial metric used by analysts to determine the health of a company. Accountants estimate the value of the company if it liquidated and paid debts today using t
Sophisticated investors know their way around the 10-K report. It is a document released annually by companies to shareholders. Furthermore, the format is typically uniform, as it is a required submis
Pattern Day Trader is a FINRA designation for participants in the stock market. The regulatory body differentiates frequent trading activities by professionals apart from those whom participate as a h
Financial instruments have personalities. Not in the sense that they are humble or funny, but rather the way they move. ATR or average true range tells traders what to expect when trading these instru
IRA Explained IRA stands for Individual Retirement Account and is a way for investors to save for retirement in a tax-efficient way. Many different tools for retirement saving exist. It is paramount t
Free Cash Flow (FCF) Defined Free Cash Flow or FCF is another measure of a company’s financial performance. Operating cash flow minus capital expenditures results in FCF. More specifically, it
Income Statement Explained Without audited financial statements, how can investors know the health of their investment? The income statement is an integral document detailing how a company earned its
Understanding APR APR stands for Annual Percentage Rate and is the amount the borrower is charged yearly over the term of the loan. Its most common use is found in credit card charges. However, this t
What is EBITDA? EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company’s financial health and earnings potential from core business opera
Investing: What is IRR? Management’s main goal is creating shareholder value. Achieving this requires capital budgeting decisions that give positive expected returns, also known as the Internal
Gross margin is a financial measurement that reveals how much it costs for companies to manufacture the goods it sells. It is the most bare-bones measurement of a companies performance. However, it is
TTM stands for trailing twelve months. It’s used to represent the performance of company. That said, TTM is calculated manually by adding the last four quarterly values. You can use TTM for met
What Is RSI? RSI stands for relative strength index, it’s a technical analysis indicator that traders use to gauge momentum and if a stock is either overbought or oversold. The indicator was cre
What Is Yield Yield is the returned income on an investment. This typically refers to income generated from interest or dividends. For the most part, yields are expressed in annualized terms. The two
What Is ROI? The return on investment (ROI) is a ratio that measures the income earned on the invested capital. Return on investment is often used to evaluate performance. The return on investment mea
What is ‘Return on Equity’ Return on equity (ROE) is one factor used to determine’s a firm’s growth rate. It’s the amount of net profits divided by equity. Equity is defi
Simple Moving Average A moving average is primarily used as an indicator to gauge the momentum and trend for a stock, bond, commodity, or currency. A moving average is based on the average price of th
Bear Markets A bear market is a financial term used to express when the price of a group of stocks, bonds, currencies, or commodities are steadily declining or expected to. The above chart is of crude
Bull Market A bull market is a financial term to used to express when the price of a group of stocks, bonds, currencies or commodities are steadily rising or expected to. The above chart is of the SPD
What Is Volume And Why It Matters Volume is the number of shares traded in a stock or ETF during a given period of time. Examples of Volume: On the above date, Apple (NASD: AAPL) traded more than 60M
What Is “P/E Ratio” The P/E ratio is the ratio of the current stock price to last year’s earnings. It is also known as the price-to-earnings ratio. The figure can be drawn from the f
What Is Volatility In The Market Mean? Actual volatility is the measure of the amount of randomness in an underlying asset at any point in time. Actual volatility is instantaneous and can not be measu
What Does The Term Average Down Mean In Trading? The term averaging down in stock trading is the act of buying more shares to improve your price. Lets say you bought 100 shares of Apple at $100 pe
