trading system

Stock Screeners

Screening potential stocks that you may invest in is one of the most important aspects of investing in the stock market.  Without proper stock screening, you may end up with a portfolio full of stocks that are underperforming and inferior to other stocks on the market.  This is often the problem with many new investors to the market who refuse to screen their stocks or do a lackluster job.  Think of stock screening as filtering your stocks.  You start with a giant list of potential stocks that are good candidates for investing, and by the end you are left with the one or two stocks that you will invest in.  There are many criteria that can be used for filtering your potential stocks.  These criteria include price, recent history, company popularity, company history, industry projections and PE ratios.  After you have narrowed your list down to the best five or six stocks, you must do some waiting and observing.  Set your projections for each stock, wait two weeks and then check the actual results against your projections.  The stocks that end up meeting your projections are the ones that you will inevitably invest in.  Each stock that you end up investing in must be weighed against your investment risk profile.  If the stock is too risky for your liking, don’t invest in it just because you think it may return large amounts of money.

Trading system

Investment Performance

This is the final tip that can be offered.  After you have done all of your research, gained as much knowledge as possible, and have narrowed down your choices to just a few, it is time to start investing.  Just because you have put the money in the stocks doesn’t mean the work is over.  In reality, your work is just beginning.  You must constantly monitor your stock performance while you have money in that stock.  This is the time where a professional investment planner comes in handy as they can monitor your portfolio while you continue on with your life.  If you choose to monitor your stock performance by yourself, there are a few key tips you should be aware of.  The most important aspect to monitor is the price.  Also, just because the price starts to drop doesn’t mean that you should instantly sell every share of that company.  Many times it is a temporary drop and the price will rebound.  It is recommended to sell the stock once it reaches your projections or exceeds them.  Do not hold on to stock for too long that is constantly rising, as it is bound to crash eventually.