what works on wall street

bhartesh

Newbie
1 0
hello everybody

i am interested in investing in stock market in quantitative style . I have read the book what works on wall street latest edition by James O'Shaughnessy. I have come to the conclusion that i should invest the following way

rank all the stocks with
1 p/e the lowest ranked as 100 and than lowering the rank as i move up to 1
2 p/b the lowest ranked as p/e
3 p/s the lowest as ranked above
4 p/cf the lowest as ranked above
5 ev/ebitda the lowest as ranked above
6 shareholder yield with highest ranked as 100 and than go lowering


now tough part comes

first i will have to shortlist top 10% stocks from the comulative score of the above ranking .Now i have to check the top 25 stocks with maximum 6 month price appreciation and buy them

my questions are

1 the maximum 6 month price appreciation includes the month in which i am investing or to exclude that month. for example if i am investing in the month of july, date 16 . than should i exclude the month of july or include it ?

2 in the book the author has stated about the rules of the game in which he has mentioned that he close his stock position on certain criterias like when the dividend yield is cut to half or the price of the stock dwindle to 50%

my question is suppose the overall market corrects to 50% than should i close all the position or should i only close the position if the stock exclusively goes down to 50%?


please help me in this regards

thanks in advance
 
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