Category: Stock Research
-
What is MACD? How to Read MACD?
Moving Average Convergenc/Divergence ( MACD) indicator is an oscillator technique that uses 2 exponential moving averages. What makes this indicator so useful is that it combines some of the oscillator principles with a dual moving average crossover approach. MACD line is the difference between two exponentially smoothed moving averages of closing prices (usually the last…
-
Analytical tools: Use Time cycles
We are going to add the important dimension of time to our growing list of analytical tools. Instead of just asking ourselves which way and how far a market will go, we’ll start asking when it will arrive there or even when the move will begin. When we study chart patterns, we’re aware that there…
-
Option Selling Strategy for Trading Market Bottoms
High volatility associated with stock-market bottoms offers options traders tremendous profit potential if the correct trading setups are deployed. Through a net options selling approach, there is a way around this problem. Here we’ll look at a simple strategy that profits from falling volatility, offers a potential for profit regardless of market direction and requires…
-
Successful Forex Traders Should know Four strategies
Good trading comes from a combination of talent and hard work.By blending good analysis with effective implementation, your success rate will improve dramatically. Here are the four strategies that can serve you well in markets. 1.Approach The first step is to align your personal goals and temperament with the instruments and markets that you can…
-
What is Profit margin? How to use it?
For a business to survive in the long term it must generate profit. Therefore the net profit margin ratio is one of the key performance indicators for your business. Profit margin is used as a measure of how much a company actually retains in earnings per dollar of revenue from sales of goods or services.…
-
Using Technical Analysis in Timing
Tactics on Breakouts: Anticipation or Reaction? The trader is forever faced with the dilemma of taking a position in anticipation of breakout, taking a position on th breakout itself, or waiting for the pullback or reaction after the breakout occurs. This situation is an example of how trading multiple positions simplfies the dilemma. The trader…
-
Measures of Historical Rates of Return
Some people like to give up immediate possession of savings expect to receive in the future a greater amount than they gave up. What they do with the savings to make them increase over time is investment. Specially, an investment is the current commitment of dollars for a period of time in order to derive future…
-
What Is Dividend Yield? How To Analyze Dividend Yield?
Dividend yield is the yield a company pays out to its shareholders in the form of dividends.It is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a…
-
Stock Price Book Value and Its Uses
Book value is a measure of what a firm’s assets are worth after deducting for depreciation and other claims on the company, such as short- and long-term liabilities. In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on…
-
Earnings Before Interest, Taxes, Depreciation and Amortization – EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is an approximate measure of a company’s operating cash flow based on data from the company’s income statement. It is calculated as follows by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization: EBITDA = Revenue – Expenses (excluding tax, interest, depreciation…