Over many years of my Investing Journey, I have figured out that Screeners are one of the most Integral part of your Investment Process or Strategy
A Good Screener is a Good Filter; allowing the Stocks you would have liked to Invest, but blocking those Stocks which you wouldn’t have invested anyways. For this, the Screener needs to have the following qualities:
- The Screener should save you time. It must help you focus on Stocks which meet your Investment Idea/Goal.
- So naturally, this means reducing your Stock Universe
- This will help you spend more quality time analysing the stocks that pass through your screener
- The Screener shouldn’t be so strict that lots of probable interesting stocks gets filtered out, but at the same time, it shouldn’t be so loose that it allows lots of stocks. There should be a fine balance which can be achieved with experience.
- The Screener can incorporate Fundamental parameters, however from my experience, I have learnt that most Fundamentals lag the price of a Stock (by at least a Quarter, sometime by couple of years). So my advice is: go easy on Fundamental Screening.
- Stock Screeners are mainly used for deciding Entry, which according me is just half the Process. Exit has to be managed by some other process or strategy.
I’m publishing few of the Screeners that I have developed. Some Screeners are best for Swing Investing, some others for Momentum Investing: will mention the scenario where these can be used, wherever possible. Will also give out Backtest results for Screeners (if available).
Note: These Screeners have been designed mostly to suit my Investing style. My advice is to use them only as reference, as its literally impossible to mimic anyone else’s Investment mindset.