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Research & Analyze

Know what to look for and how to look for it.
CONTENT WITH Research & Analyze
During any market cycle, there will be leading and lagging sectors as well as industry groups within them. For bearish traders, the act of focusing on stocks in weak performing groups or sectors is one way to improve their probability of long-term success.
The overall market trend is important in bearish trading. It can be an extremely useful piece of information to have some ideas as to whether the current trend of the stock market – or any tradable asset - is presently bullish, bearish or neutral.
When thinking about establishing any trading strategy, considering your timeframe is very important. With Bearish strategies, however, it may be even more critical to your success due to the potentially unlimited risk involved.
An “Analyst Rating” for a given stock is essentially a professional opinion as to the investment prospects of a company based upon that analyst's assessment of the factors affecting the company based on the analyst’s education, experience and investment viewpoint.
The key is to maintain a level of debt that is not excessive given the size of the company itself and to use the borrowed money for the appropriate business expenditures. Traders often use the Debt to Equity ratio (D/E) to assess the relationship between a company’s debt and its shareholder equity.
Because sales data is typically less volatile than earnings data, the historical range for P/S data for a given stock is typically well-defined. As a result, a relatively low P/S for a given stock can be an extremely useful tool for identifying undervalued opportunities.
Dividend yield and growth are secondary factors that often help to illustrate that a company is healthy and anticipates having a long-term supply of available cash.

The term “free cash flow” refers to a measure of cash flowing into a company from sales, royalties, etc. minus capital expenditures paid out.

The term “profit margin” refers to the percent of profit a company makes from each dollar of revenue it generates. In other words, profit margin measures how much out of every dollar of sales a company actually keeps in earnings.

There are a number of ways that a company can go about growing its earnings per share.

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