Learn investing metrics, stock screening, and strategy testing
Stax learning pages are written for investors who want the process to make sense before they touch real capital.
Strategy foundations
Start with the core workflow: rules, backtests, paper trading, risk, and common mistakes.
What Is Backtesting?
Backtesting is a way to test investing rules against historical data before using them in a real decision.
Backtesting vs Paper Trading
Backtesting studies history. Paper trading practices the strategy in the current market without risking real money.
What Is Sharpe Ratio?
Sharpe ratio is a way to compare return against volatility so users do not judge a strategy by return alone.
What Is Max Drawdown?
Max drawdown measures the worst peak-to-trough drop in a strategy over the test period.
How to Build a Stock Strategy
A stock strategy should define what to buy, when to buy, how much to hold, when to sell, and how to measure risk.
Stock Screening Fundamentals
Screening narrows thousands of stocks into candidates that match a defined investing thesis.
Common Backtesting Mistakes
Backtests are useful only when the assumptions are honest and the user looks beyond the biggest return number.
Risk Management for Beginner Investors
Risk management is the set of rules that keeps one bad idea, trade, or market period from controlling the entire outcome.
Investing metrics series
Plain-English guides for the metrics inside the strategy intake flow, including formulas, examples, ranges, and how to screen with each one.
How to Use Revenue/Share in Investing
Revenue per Share helps investors judge whether sales power is growing on a per-share basis. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use EPS in Investing
Earnings per Share (EPS) helps investors see how much profit belongs to each share. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use ROE in Investing
Return on Equity (ROE) helps investors measure how efficiently a company turns shareholder capital into profit. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use ROIC in Investing
Return on Invested Capital (ROIC) helps investors test whether the whole capital base is earning attractive returns. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use Operating Margin in Investing
Operating Profit Margin helps investors understand how much revenue survives core operating costs. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use D/E Ratio in Investing
Debt-to-Equity Ratio helps investors spot how much balance-sheet pressure comes from borrowed money. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use FCF/Share in Investing
Free Cash Flow per Share helps investors see how much real cash the business produces for each share. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use P/E Ratio in Investing
Price-to-Earnings Ratio (P/E) helps investors compare the price investors pay against annual earnings power. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use Dividend Yield in Investing
Dividend Yield helps investors understand how much cash income a stock pays relative to price. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use FCF Yield in Investing
Free Cash Flow Yield helps investors compare the cash a business generates against the market price. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use P/B Ratio in Investing
Price-to-Book Ratio (P/B) helps investors compare the market price with the accounting value of net assets. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use Current Ratio in Investing
Current Ratio helps investors check whether short-term assets can cover short-term obligations. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
How to Use Asset Turnover in Investing
Asset Turnover helps investors see how much revenue a company generates from its asset base. The point is not to worship one number. The point is to decide whether it supports the kind of business you want your strategy to own.
Learning is stronger when it connects to a tool.
Read the concept, build the rule, test the strategy, then practice before the decision becomes real.