Foundry
Educational articles for serious traders. Market structure, risk management, and institutional theory.
What Is Drawdown — Understanding the True Cost of Loss
What Is Drawdown — Understanding the True Cost of Loss Investment Concepts The Peak-to-Trough Reality Drawdown measures the decline from a peak to a subsequent…
What Is Free Cash Flow — the Most Honest Number in Finance
What Is Free Cash Flow — the Most Honest Number in Finance Investment Concepts Cash That’s Actually Free Free Cash Flow (FCF) is the cash…
What Is the Current Ratio — Can the Company Pay Its Bills?
What Is the Current Ratio — Can the Company Pay Its Bills? Investment Concepts The Liquidity Test The Current Ratio answers the most basic survival…
What Is the Debt-to-Equity Ratio — Measuring Financial Risk
What Is the Debt-to-Equity Ratio — Measuring Financial Risk Investment Concepts Who Owns the Company: Lenders or Shareholders? The Debt-to-Equity ratio (D/E) tells you how…
What Is Earnings Per Share — the Number That Moves Markets
What Is Earnings Per Share — the Number That Moves Markets Investment Concepts Profit, Simplified Earnings Per Share (EPS) boils a company’s entire profit down…
What Is Dividend Yield — Getting Paid While You Wait
What Is Dividend Yield — Getting Paid While You Wait Investment Concepts Income from Ownership Dividend yield tells you how much income a stock pays…
What Is Short Interest — and How Short Squeezes Actually Work
What Is Short Interest — and How Short Squeezes Actually Work Investment Concepts Betting Against a Stock Short selling means borrowing shares you don’t own,…
What Is Beta — Understanding How Sensitive a Stock Is to the Market
What Is Beta — Understanding How Sensitive a Stock Is to the Market Investment Concepts Moving With the Market — or Against It Beta measures…
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly Investment Concepts The Hidden State Problem Imagine you’re watching a stock price…
What Are Market Regimes — the Four Phases Every Market Cycles Through
What Are Market Regimes — the Four Phases Every Market Cycles Through Investment Concepts Markets Don’t Move Randomly Markets cycle through distinct phases, much like…