Separating the winners from the losers is a constant challenge for investors. Many focused investors may look to track stock momentum based on historical prices. FMC Corporation (NYSE:FMC) currently has a 6 month price index of 1.00047. The six month price index is calculated by dividing the current share price by the share price six months ago. A ratio over one represents an increase in the stock price over the six month time frame. A ratio under one shows that the price has lowered over that defined time period.
Successful investors are usually adept at expecting and reacting to sudden change. Things may be all roses when the markets are riding the bulls higher, but environments shift and can leave investors suddenly in the lurch. When times are good, investors may be well served by maintaining a watchful eye on the portfolio. Becoming complacent when everything seems to be working can become a disaster very quickly without the proper attention. Setting up a plan for different market scenarios can greatly benefit the investor. Routinely studying portfolio contents may help when the need to release some underperformers comes. Keeping close tabs on the portfolio may also help fend off a personal panic if events take a dramatic turn for the worse.
Traders might also be keeping an eye on the Piotroski Score or F-Score. The score is named after its developer Joseph Piotroski who created a ranking scale from 0-9 to help determine the financial strength of a company. FMC Corporation (NYSE:FMC) currently has a Piotroski Score of 5. To arrive at this score, Piotroski gave one point for every piece of criteria met out of the nine considered.
Stock market investors are typically searching for solid quality companies to help boost the portfolio. There are plenty of quality companies out there, the tricky part may be determining what constitutes as quality. Many investors look for companies that are solid sales leaders within a market that is growing. Going further, investors may be studying a company’s proven track record and gauging the competence of current management. Adding other factors such as brand recognition and prospects for steady growth, investors may eventually find a company that is worth taking the risk for future returns.
Investors may also be watching company stock volatility data. FMC Corporation (NYSE:FMC)’s 12 month volatility is presently 23.522600. The 6 month volatility is 25.766200, and the 3 month is noted at 21.667900. Stock price volatility may be used to identify changes in market trends. When markets become very volatile, this may point to a change in investor sentiment. Watching volatility in combination with other technical indicators may help investors discover important trading information.
Diving in a bit further, we can take a quick look at the Q.i. (Liquidity) Value. FMC Corporation (NYSE:FMC) has a present Q.i. value of 38.00000. This value ranks stocks using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help spot companies that are undervalued. A larger value would represent low turnover and a higher chance of shares being mispriced. A lower value may indicate larger traded value meaning more sell-side analysts may cover the company leading to a smaller chance shares are priced improperly.
Investors looking to secure stock market profits may be tweaking an existing strategy or looking to devise a brand new one. As the stock market keeps charging higher, investors will have to figure out how they want to play the next few months. Identifying market tops and possible correction levels may be very tricky. With the markets trading at current levels, the situation for the average investor may be widely varied. Some investors will be trading with a shorter-term plan, while others may be focused on a longer-term investment time frame. There are many financial professionals who are predicting a sharp reversal in the stock market, but there are also those who believe that the upswing will keep pushing stocks higher over the coming months. Investors will need to decide for themselves which way they think the momentum is going to swing and prepare accordingly.
Investors keeping an eye on shares of FMC Corporation (NYSE:FMC) may be examining the company’s FCF or Free Cash Flow as well. FCF is a measure of the financial performance of a company. FCF is calculated by subtracting capital expenditures from operating cash flow. Currently, FMC Corporation has an FCF score of 4.085627. The FCF score is an indicator that is calculated by combining free cash flow stability with free cash flow growth. Typically, a higher FCF score value would indicate high free cash flow growth. The company currently has an FCF quality score of 1.745609. The free quality score helps estimate free cash flow stability. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. With this score, it is generally considered that the lower the ratio, the better.
Following a pre-defined trading system might be a solid choice for securing profits in the stock market. Defining goals before creating a plan can be a good way to start the trader off on the right path. There are bound to be many ups and downs throughout the trading process. Being able to manage wins and losses may be one of the most important factors to becoming a successful trader. Without a researched plan, traders may realize how quick the losses can pile up. Properly managing risk, position size, entry and exit points, and stops, may come with experience, but it is typically necessary in order to stay above water in the fast paced market environment.