Stocks Articles

  1. The Four Most Commonly-Used Indicators In Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and to find entry/exit points.
  2. For Individual Investors, These May Be The Best Of Times

    The raging debate on high frequency trading may lead the average retail investor to think that he/she continues to get a raw deal in the stock market. The reality is that these are probably the best of times for them.
  3. Use Knock-Out Options To Lower The Cost of Hedging

    Unlike a plain-vanilla call or put option where the only price defined is the strike price, a knock-out option has to specify two prices – the strike price and the knock-out barrier price.
  4. How To Profit From The "Night and Day" Aroon Oscillator

    “Aroon” is a Sanskrit word loosely translated as the transition from night to day, appropriate for a measure that attempts to determine when a trend is about to develop into something of substance.
  5. The Odd Lot Theory: Betting That Small Investors Are Wrong

    The odd lot theory is a largely discredited proposition that small investors are usually wrong and that doing the exact opposite will yield above-average returns.
  6. The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that can rise or fall in value over time.
  7. A Simple Overview Of Quantitative Analysis

    All of the potential highs, lows, and sentiments associated with investing can overshadow the ultimate goal—making money. The “quantitative” approach to investing seeks to pay attention to the numbers instead of the intangibles.
  8. Understanding the "Hanging Man": The Optimistic Candlestick Pattern

    A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The candlestick is recognizable by a small box atop a long, narrow "shadow."
  9. Use The McClellan Oscillator To Measure Market "Breadth"

    How broad is the market? And, once we answer that question, how can we use that answer to our advantage?
  10. Tweezers Provide Precision For Trend Traders

    How to use candlestick tweezer patterns for analyzing and trading financial markets.
  11. How To Use The Chaikin Oscillator To Your Advantage

    How best to reconcile increasing or decreasing volume with price fluctuations? No one has a definitive answer, but Marc Chaikin has come as close as anyone. Enter the Chaikin Oscillator.
  12. How Traders Can Utilize CCI (Commodity Channel Index) To Trade Stock Trends

    Use the Commodity Channel Index (CCI) to enter and exit price trends.
  13. Using the Coppock Curve to Generate Stock Trade Signals

    How the Coppock Curve momentum indicator can help you isolate buying opportunities and exit points in the stock market.
  14. Four Breakout Stocks To Watch

    These biotechnology and pharmaceutical stocks continue to put in new highs, but indicators are diverging.
  15. The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
  16. EDGAR: Investors' One-Stop-Shop For Company Filings

    You can learn a lot about any listed company through this system - if you know how to use it.
  17. The Alphabet Soup Of Stocks

    Are the countless stock categories leaving you puzzled? Here we help you sort through the confusion.
  18. Decoding DuPont Analysis

    Get a deeper understanding of ROE with these three-step and five-step calculations.
  19. Assess Shareholder Wealth With EPS

    Find out if management is doing its job of creating profit for investors.
  20. Understanding The Cash Conversion Cycle

    Find out how a simple calculation can help you uncover the most efficient companies.
  21. Investing in Leveraged Buyouts (LBOs): Know the Risks

    Leveraged buyouts allow investors to make large acquisitions without committing a lot of capital. But LBOs carry big risks and can result in huge returns or huge losses.
  22. How to Value Companies With Negative Earnings

    For some investors, the possibility of stumbling upon a small biotech with a potential blockbuster drug, or a junior miner with a giant mineral discovery, makes the risk of investing in companies with negative earnings well worth taking.
  23. Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  24. Cash Flow Statement: Analyzing Cash Flow From Financing Activities

    The financing activity in the cash flow statement measures the flow of cash between a firm and its owners and creditors.
  25. Comparing The P/E, EPS And Earnings Yield

    P/E may be the established standard for valuation purposes, but the earnings yield is especially useful for comparing potential returns across different instruments.
  26. Challenges Faced When Analyzing Green Chip Stocks

    The fact that a green chip is not yet a blue chip should not alarm investors, but they need to be aware of the differences and challenges that can arise from assuming these are durable companies with sustainable competitive advantages.
  27. Cash Flow Statement: Analyzing Cash Flow From Investing Activities

    Reviewing investment activity is one of the most important exercises an individual can do to see how efficiently a company's management is using shareholder capital to run is operations.
  28. If Kennedy, Eisenhower, Alexander the Great Et Al Were Leaders in Finance

    Would Eisenhower, Roosevelt and Kissinger have made good corporate executives? What about Alexander the Great?
  29. The Optimal Use Of Financial Leverage In A Corporate Capital Structure

    The amount of debt and equity that makes up a company's capital structure has many risk and return implications.
  30. Can Investors Trust The P/E Ratio?

    The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.
  31. The Common-Size Analysis Of Financial Statements

    Using common-size financial statements helps investors spot trends that a raw financial statement may not uncover.
  32. How To Trade The News

    Regardless of your investing horizon, learning to trade the news is an essential skill for astute portfolio management and long-term performance.
  33. The Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component of any attempt to analyze a company for investment. After all, when you invest in a share of stock or an entire business, you want to know you are paying a sensible price.
  34. Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  35. Analyzing Blue-Chip Stocks

    To find a good value on a blue-chip stocks, look for companies with strong fundamentals, appropriate levels of debt and competitive advantages.
  36. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.
  37. Cash Flow Statement: Reviewing The Cash Flow From Operations

    A company's ability to consistently generate positive cash flows from its daily business operations is highly valued by investors. Operating cash flow can uncover a company's true profitability and provide insight to its financial health.
  38. Balance Sheet: Analyzing Owners' Equity

    Analyzing owners’ equity is an important analytics tool, but it should be done in the context of other tools such as analyzing the assets and liabilities on the balance sheet.
  39. Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors debate which type of analysis - fundamental or technical - provides higher returns.
  40. Analyzing Investments With Solvency Ratios

    Solvency ratios are extremely useful in helping analyze a firm’s ability to meet its long-term obligations; but like most financial ratios, they must be used in the context of an overall company analysis.
  41. Reviewing Assets On The Balance Sheet

    A firm uses its assets to generate sales and bottom-line profits for shareholders. A healthy company will continually grow its assets, which stems from leftover profits that are reinvested back into the business.
  42. Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  43. How To Analyze The Transportation Industry

    By gaining an awareness of the transportation firms and trends that affect these players, investors can gain an edge by analyzing the sector and looking to profit from understanding it.
  44. Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use both sets to get the complete picture of a company’s financial position.
  45. An Introduction To Coverage Ratios

    Interest coverage ratios help determine a company's ability to pay down its debt.
  46. Investing In Healthcare Facilities

    Read on to learn about how to value heathcare sector stocks.
  47. Don't Let Stock Prices Fool You

    Find out why a stock with a six-figure share price can still be a good value.
  48. Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  49. Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  50. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.
  51. War's Influence On Wall Street

    Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common.
  52. Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. Yield by definition means to give way to or produce. There are many ways to measure yield - three common ones are dividend yield, earnings yield and free cash flow yield.
  53. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
  54. How To Value An Insurance Company

    In the insurance space, accurate predictions of metrics such as ROE are important, and paying a low P/B can help put the odds in investors' favor.
  55. Introduction To STRIPS

    STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how.
  56. Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.
  57. Equity Valuation: The Comparables Approach

    The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation models: the discounted cash flow (DCF), cost and comparable approaches. The comparable model is a relative valuation approach and is explained in more detail below.
  58. Understanding Leverage Ratios

    Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios - including the debt, debt-to-equity and interest coverage ratios - to identify firms with unhealthy debt levels.
  59. Understanding Profit Metrics: Gross, Operating and Net Profits

    Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look at gross profit and operating profit as well.
  60. How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements and where it falls short.
  61. How To Value An Internet Stock

    An academic study, published several years after the peak of the dot-com bubble in March 2000, accurately described just how whacky internet valuations grew until the bubble burst. The study's first sentence basically stated that valuations lost touch with reality.
  62. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  63. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?
  64. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  65. Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  66. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  67. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
  68. Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.
  69. Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
  70. Warding Off Hostile Takeovers

    The purpose of this article is to provide a general overview of hostile corporate takeovers, while highlighting a general course of action against such activity. This article provides basic information about the Williams Act, the use of company stock with differential voting rights, ESOPs as a defense mechanism, poison pill strategies, white knight investor alternatives, and greenmail as an alternative to blackmail.
  71. 10 Golf Tips To Help Investors Tee Off

    There are a lot of similarities between golf and investing. Find out how to keep your game out of the rough.
  72. Becoming A Chartered Market Technician

    The CMT certification involves three tough exams. Find out what you need to do in order to pass.
  73. Differences Between Forward P/E And Trailing P/E

    The most common types of price to earnings ratios are forward P/E and trailing P/E. Find out how they differ and the advantages and drawbacks of each.
  74. Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  75. The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ensues.
  76. Forex: Demo Before You Dive In

    All trading platforms have benefits and drawbacks - master the fake trade before making a real one.
  77. How To Use Price-To-Sales Ratios To Value Stocks

    Take a look at how this effective ratio can be influenced by certain critical factors.
  78. Beware False Signals From The P/E Ratio

    The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story.
  79. Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  80. Build A Dividend Portfolio That Grows With You

    Balance risk and return to produce adequate income despite inflation.
  81. Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
  82. How To Outperform The Market

    Active trading is an investing style that aims to beat the market. Find out how it works, and whether it will work for you.
  83. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
  84. Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  85. Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.
  86. How To Identify A Micro-Cap Scam

    Discover how to distinguish a real investment opportunity from a fraudulent one.
  87. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  88. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  89. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  90. Small Caps Boast Big Advantages

    Find out why little companies have the greatest potential for growth.
  91. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  92. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.
  93. How To Find P/E And PEG Ratios

    If these numbers have you in the dark, these easy calculations should help light the way.
  94. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  95. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  96. Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.
  97. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  98. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  99. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.
  100. Writing Down Goodwill

    Goodwill represents an acquisition amount over and above what the purchased firm’s net assets are deemed to be valued at on the balance sheet.
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