Choosing one stock from a list of good stocks

[adz]

Hey all

Just hoping to get some advice and opinions etc.

Recently I have spent a fair bit of time trying to program the perfect technical stock screener. I finally did it and now every time I run a scan I get a list of good , strong , long term trending stocks.

The thing is, for now I just want to follow one of them and since they are all potentially good, it seems it wouldn't matter which one I chose to follow.

So, is there anything I could do to see if any of them might be a better choice or anything I could look for in order to narrow the list ?

cheers

 

[jacknapier]

Write them on a paper, post it on a dart board. throw dart.

 

[malaguti]

Hey all

Just hoping to get some advice and opinions etc.

Recently I have spent a fair bit of time trying to program the perfect technical stock screener. I finally did it and now every time I run a scan I get a list of good , strong , long term trending stocks.

The thing is, for now I just want to follow one of them and since they are all potentially good, it seems it wouldn't matter which one I chose to follow.

So, is there anything I could do to see if any of them might be a better choice or anything I could look for in order to narrow the list ?

cheers

You could start with a target, compare that to your initial risk and the ones with the higher return potential should be at the top, no?
Secondly you could try relative strength with its industry sector, you would rather the ones outperforming their own sectors.
Just a couple of filters you could use..

 

[adz]

You could start with a target, compare that to your initial risk and the ones with the higher return potential should be at the top, no?
Secondly you could try relative strength with its industry sector, you would rather the ones outperforming their own sectors.
Just a couple of filters you could use..

Yes. The industry sector is a good idea !

Cheers

 

[Vinayak1000]

The markets should be fairly bullish this week, so I have chosen to own a basket of stocks that are leaders or are in a strong sector and will adjust as necessary as we go through the week. And I have a few bear plays, like oil and HPQ. Usually I like to buy equal leaders and laggards at the end of the day, and then sell off in the morning once a temperature read for the morning has been established, holding the stocks during the course of the morning that are most in tune to the overall general market direction. I also will do some M&A plays if it makes sense to do so, but am not doing this right now.

 

[viktor_k67]

Hey all

Just hoping to get some advice and opinions etc.

Recently I have spent a fair bit of time trying to program the perfect technical stock screener. I finally did it and now every time I run a scan I get a list of good , strong , long term trending stocks.

The thing is, for now I just want to follow one of them and since they are all potentially good, it seems it wouldn't matter which one I chose to follow.

So, is there anything I could do to see if any of them might be a better choice or anything I could look for in order to narrow the list ?

cheers

You must use some criteria to screen the stocks. Try to rate each stock during the scan and then go from there.

 

[ACstudio]

If it were me I would want to stress test it...maybe pick out the ones that are at the highest volatility rank compared to the last 12 months...then compare those results as was stated above, against it's sector or a highly correlated index. Then I compare everything to the SPY...I figure if you can't outperform the SPY you're getting beat by monkeys who can throw darts.

 

[Stargunner]

I'm with mag, you use the screener to find your opportunities, then trade the ones with highest risk/reward ratio from stop loss/take profit orders

 

[Mr. Charts]

"The thing is, for now I just want to follow one of them"

IMHO that is a serious flaw. What if something is announced which causes a stock price collapse?
You need to diversify long term holdings over at least 14 stocks.
And if the market plunges, most longs will also suffer, so you should consider some down trenders as well. Alternatively think about buying some cheap OTM puts as insurance or learn to trade options only.

malaguti's,
"Secondly you could try relative strength with its industry sector, you would rather the ones outperforming their own sectors."
is wise, in fact essential !