Screening the Market
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This is the only book to provide a process for building Stock Picking
Strategies using Stock Screeners.Using a process has the benefit of forcing you to plan for your screen. You shall identify its main factors, secondary factors and these of lower importance. This ensures that your screen’s results will be in line with your investment objective. Gerstein also shows how to reduce the number of stocks in a screen using alternative themes and scoring (enhanced ranking).
The book includes many examples which make it easy for anyone to grasp the concepts.
The book is in fact a 4 steps formula to pick stocks: Find, Analyze, Buy, Sell.
The author - director of investment research at Reuters (ex Multex) - uses stock screeners only in step 1 as idea generator. He then further analyzes the stocks passing a screen in subsequent steps which he also detailed. By opposition, mechanical investors only use Step 1 and buy all (at least most) stocks passing through a screen.
Highly recommended to anyone using stock screeners even though you've been using them for some time. You may find new ways to use your screener after reading this book.
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