The stock market is full of money-making opportunities. For many people, the stock market – which has grown tremendously over the years – has become a means of livelihood. Steadily but surely, a lot of people are now using their stock investments to reap huge monetary rewards. A lot of savvy investors know how to extract money in down markets as well as in good times simply by using fundamental stock selectors.
These tools will allow you to sift through tons of stocks and select those that may be ready to explode. With KLSE & SGX combined, there are over one thousand six hundred stocks to uncover the hidden gem.
In the past the entire stock market process and conditions were rather difficult to examine. You only had two options – you could either take your problems to a stock broker or do it yourself as an experienced stock market analyst. This may mean drowning in tons of information, historical prices and financial data. But today, an average beginner can wade into the stock market and become relatively successful, using current day technology and information.
Different stock market research tools and software are now available (sometimes free) on the internet. A novice can use these tools to better understand the general economy as well as particular stocks and can start earning money in the stock market. Fundamental stock selectors are one such research tool that has enabled investors to prosper. These tools have probably revolutionized the stock market more than any other, making stock analysis easily accessible to the masses who may not be very experienced in stock market analysis.
In fact, using a fundamental stock selector is not very difficult. The first thing you have to do before using a screener is to establish the main characteristics of certain stocks that you are looking for. For example, are you seeking stocks that fall within a certain price range? Or a certain price-to-earnings (PE) ratio? Or a certain amount of capitalization?
You may also include in your searches important information such as the make up of the management team, the sales history, dividends and many other parameters. Once you input what features you desire, you leave the rest to the screener. The program will sort out all the companies that have stocks which fit within your requirements. From there it is up to you to make the best choices. Afterward, you may want to study the price movement for a few days for any company’s stock you wish to invest in.
There are, of course, many types of fundamental stock selectors available to potential investors and you have to decide which one to adopt. The most important aspect of a screener is to know how to use it effectively to uncover good stocks. There are some fundamental criteria that will help you find under-valued stocks that are ready to grow in value.
All great value investors like Warren Buffett, Peter Lynch, John Templeton, Phil Fisher in one time or another, have used a fundamental stock selector similar to the Magic Scanner – Fundamental Stock Selector especially created for the KLSE & SGX financial market.
Here are a few other criteria from those mentioned above that you might include in your screen. Look for small price earning ratios and compare it against the company’s average, look for debt to equity ratios that fall into favourable ranges, look for increasing profit margins and revenues.
If you have been a follower of us and our best selling book “Dividends Don’t Lie” – Bill & Martin, you know the stocks you are buying pay dividends and also have a promising revenue growth. In the end, fundamental stock selectors will provide you with a list of results. Keep a keen eye on trends as they might indicate what to avoid or where to go for the best opportunity. These are the main points to note which lead to potential opportunities that will help you increase your stock earnings.