which stocks should i buy? should i use a stock screener? // stock picking strategy, stock picking tips, what stocks to buy, what stocks to invest in welcome to looking at themarkets with david moadel and today we're going to talk about which stocksshould i buy and should i use a stock screener finding good stocks to buy canbe a challenge maybe you've tried stock screeners tofind good stocks is this the right way to find stocks inwhich to invest your money stock
aapl finance, screeners can be a useful tool and icertainly won't condemn them however for most retail investors i would like to suggest an alternativemethod of finding good stocks to buy for most retail traders in most situations
i don't recommend trying to trade a lotof different stocks or constantly trying to find new stocks to trade instead irecommend choosing a small number of companies 10 or fewer that you know welland like a lot these should be very large companies preferably mega cab companies that wayyou can feel confident that the company won't be going bankrupt anytime soon you'll also enjoy the fact that you'llbe trading highly liquid stocks with tight bid-ask spreads and plenty ofbuyers available when you're ready to sell your stock shares or optioncontracts
these should be these should also becompanies that you like a lot and are very familiar with representing productsor services that you use or at least understand thoroughly for example you might use and enjoyapple products or facebook or starbucks famous investorwarren buffett has been known to enjoy coca-cola products for example and hehas invested in the company by studying a small number of companiesthat you like and know about you can specialize and acquire expertise inthose companies you can study their charts you can familiarize yourself withtheir price movements and you can read
the latest news articles on thosecompanies this is for most people in my opinionand easier approach than trying to learn about a very large number of companieswhose products or services they don't even understand or use so here's an example of a website rightnow as of this recording it's it's free it's a website with a stock screenerit's called finviz . com and if you wanted to use that you wouldgo there and then click on screener and they give you many options and you cantry it out if you want to i tried it out and you can see theresults here using stock screeners
as you can see you can end up with a lotof companies that you've never used or even heard of looking through thesecompanies right now how many of these are you really familiar with i don't know about you but theseprobably aren't companies that i would say that i have a lot of understandingof our familiarity or use of so if i were to try to trade these i wouldreally have to research them very thoroughly you probably wouldn't want to investyour money in a company that you don't believe in at least i hope not
stock screeners can give you anoverwhelming number of companies to choose from and if you've never heard ofmost of these companies it is it a really good idea to invest your money inthem i would say probably not stock screenerscan be a useful tool in certain situations still i prefer to learn more deeplyabout a small handful of companies that i like a lot and that i believe in if you'd like more help with this or anyaspect of trading or investing please feel free to contact me you canreach me by email anytime at david
modell @ gmail.com thanks a lot forlistening and i'll talk to you again soon
