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Stock selection filters and decisions

Discussion in 'Shares' started by wakamole, 17th Jun, 2007.

  1. wakamole

    wakamole Member

    Joined:
    10th Jun, 2007
    Posts:
    7
    Location:
    perth
    Hi all

    How do you narrow down your stock picks to a managable number to research?

    U.S. markets have loads of free online stock selection filters to narrow down your choices?

    Any filters, newsletters etc that you use to find prospects?
     
  2. coopranos

    coopranos Well-Known Member

    Joined:
    11th Oct, 2006
    Posts:
    498
    Location:
    Perth
    There are tons of things you can do to filter through all the available possiblities, here are a few options to get you thinking (certainly none of them are recommendations at all):
    - limit yourself to top 50 companies on the ASX
    - follow the recommendation of a trusted broker
    - follow the recommendations of a newsletter (Nick Radge of The Chartist - Home has a newsletter, he gives daily updates and runs 4 model portfolios that you can either follow or use to assist your learning)
    - follow somebody else's trading system. You will often have to pay, but there are systems around that claim 10+ year history with above average returns
    - develop your own system, maybe using some software like Metastock to run searches for specific critera
     
  3. wakamole

    wakamole Member

    Joined:
    10th Jun, 2007
    Posts:
    7
    Location:
    perth
    thanks coop
    In Canada and the US there are several websites that allow you to filter the whole market down to a few to look into further.

    I heard Etrade might have something like this - anyone?
     
  4. willy1111

    willy1111 Well-Known Member

    Joined:
    5th Jul, 2006
    Posts:
    54
    Location:
    Melbourne
    Hi,

    E*Trade has an advanced stock filter.

    You can basically choose to search for upto 5 different criteria at one time. It has lots of different choices and then you can say greater than or less than a certain percentage.

    ie if you want to find companies with a return on equity greater than 10%, a p/e less than 10, a peg less than 1, dividend growth (over 1,3 or 5 years) of greater than 10% and a market cap greater than $1B, etc.

    It can be quite a useful filter tool, if you have some criteria to put in.
     
  5. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
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    351
    Location:
    Adelaide, SA