Finding Profitable Stocks

There are about 4,000 of stocks (about 30,000 if you include smaller stocks and stocks on foreign exchanges). How can you find the winners? Screening stocks can give you a manageable list of candidates worth your further evaluation.

You can use one of the simple screens that are available to you free from many web sites such as Finviz.com and the one from your broker to find a handful of stocks. The filter criteria could be "P/E < 10", "Sales Growth by 20%" or a combination. If the screens consistently find you winners, they are good.

It is more complicated than that. Otherwise there will be no poor folks. However, most screened stocks should be evaluated. Among the 50 or so screens, there is only one evergreen screen that gives consistent stocks that perform. Some screens work better than others in different phases of the market cycle and/or different market conditions such as during the end of year. You need to use different screens for different purposes. For example, stress on value parameters such as "P/E" for value stocks that have to be held for a longer time than momentum stocks.

Last update: 09/2021
Size: 90 pages (6*9)