What Is Free Cash Flow And How To Use It To Evaluate Stocks Trader Education

What Is Free Cash Flow And How To Use It To Evaluate Stocks

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
Everything You Need To Know About The Income Statement Trader Education

Everything You Need To Know About The Income Statement

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 income. Furthermore, it rev
What Is APR And How It Affects You Trader Education

What Is APR And How It Affects You

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 Measure And How It Effects Stocks Trader Education

What Is EBITDA Measure And How It Effects Stocks

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
What Is IRR And How Do Companies Use It? Trader Education

What Is IRR And How Do Companies Use It?

Management’s main goal is creating shareholder value. Achieving this requires capital budgeting decisions that give positive expected returns, also known as the Internal Rate Of Return (IRR). Ca
What You Need To Know About Gross Margin Trader Education

What You Need To Know About Gross Margin

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
What Is TTM And How Can You Use It? Trader Education

What Is TTM And How Can You Use It?

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 And How Exactly Should You Use It! Trader Education

What Is RSI And How Exactly Should You Use It!

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 and How To Calculate It Trader Education

What Is Yield and How To Calculate It

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 or Return On Investment? Trader Education

What Is ROI or Return On Investment?

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
Return on Equity. What Is It And Should You Care Trader Education

Return on Equity. What Is It And Should You Care

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
Moving Averages – What You Need To Know Trader Education

Moving Averages – What You Need To Know

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 the security over a give
What Is A Bear Market And What To Watch Out For Trader Education

What Is A Bear Market And What To Watch Out For

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
What Is A Bull Market And How To Spot One Trader Education

What Is A Bull Market And How To Spot One

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 Does It Matter Trader Education

What Is Volume And Why Does It Matter

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 And Should You Care? Trader Education

What Is P/E Ratio And Should You Care?

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 And Why Does It Matter Trader Education

What Is Volatility And Why Does It Matter

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
Should You Average Down On Your Trades? Trader Education

Should You Average Down On Your Trades?

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

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