Stock Screens For
Short-Term Investing:
Available Separately From
Monthly Subscription
Most investors, and indeed
most of our subscribers, are long-term investors. But we recognize
that there are some investors who enjoy following the market
on a daily basis and trading frequently. This is even more
practical now that some discount brokers have adopted a zero-commission
policy for stock trades.
During our research into developing
screening criteria suitable for mutual funds and pension funds,
we came across several stock screens that produced extremely
high returns, but the average holding period was only 13 days.
Furthermore, only 18 stocks passed the screening criteria
at any given time. The holding period was too short and the
number of stocks was too small for a mutual fund or pension
fund, but was suitable for individuals drawn to short-term
trading.
Annual Returns of Our Short-Term Stock Screening
Strategies
After developing the screening
criteria, we wondered what would happen if we combined some
of the stock screens. We noticed that certain combinations
of the screens resulted in a handful of stocks with even higher
annual returns:
Annual Returns of Stocks Appearing In Multiple
Screens
Stocks that appeared in more
than one of four screens resulted in an annualized return
of 97.6% per year. Naturally, this assumes reinvestment of
profits and dividends. This "multiple-screen" strategy
produced, on average, three stocks that passed the criteria
at any given time. Three stocks is far from the minimum to
run a mutual fund (one of our research goals), but enough
to add spice to an individual's portfolio. Combining results
from all screens resulted in an average of 18 stocks in which
to invest.
For several years we published
the best of these strategies on a daily basis, but because
we are slowly transitioning toward semi-retirement, we've
decided to stop publishing the results of these screens due
to the daily time commitment and the fact that most of our
subscribers are long-term investors, not short-term traders.
Please note that even in retirement we will continue to publish
our long-running core portfolios.
Contact Us To Obtain
The Screening Criteria
You do not have to be a subscriber
to purchase and use the screening criteria. The stock screens
are now available for purchase for a one-time fee of $475,
with the condition that the criteria not be published. Screening
software is available from a third party and usually costs
$16.58 per month if you select their $199 annual plan. However,
the company is now offering the screening software for free
and can be found here.
At the time of this writing, the company is offering all of
the necessary criteria to run our stock screens, but they
could choose to remove some criteria. Unfortunately, we have
no control over their free offering. We only recommend their
stock screener because of the availability of the screening
criteria. It is possible the criteria could be available on
other screeners.
Please contact
us if you are interested in obtaining the screening criteria
to use on your own.
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