Stock Picking (Part 1)

As a trader who want to invest in the stock market, you have to choose between more than 8000 stock.
It's not an easy task and you should use a stock picking method to filter all these stocks.

There is three basic methods of picking stocks.
- Technical
- Fundamental using Quantitative Analysis
- Fundamental using Qualitative analysis

You can of course mix these methods to create your stock picking strategy.

As an example, i have a trading strategy that use this stock picking method as buy rules :
- Stock must have low Price to book ratio, high return on capital value ...(Fundamental using Quantitative Analysis)
- Stock must be above 50 day moving average (Technical)
- Stock company must have experienced management team.

I found that when mixing fundamental and technical analysis you can improve your performance, but you need to choose the right indicators and fundamental data, a long task that involve paper trading, back-testing...

This is the first post, and three other posts about stock picking are coming.

The next part will be about using technical analysis as stock picking method.