Finding #1 Stocks Screening, Backtesting and Time-Proven Strategies

by Matras, Kevin

• ISBN13: 9780470903407
• ISBN10: 0470903406
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-04-26
• Publisher: Wiley

Summary

Based on Zacks' Research Wizard product, this book will provide readers with market beating stock selection techniques and advice on how to build their own stock selection system. Derived largely from Zacks' Research Wizard home study course, the book will disclose several Zacks trading methods that have outperformed the market for a long period of time. In addition, the book will show readers how to screen stocks and develop selection criteria to build various types of stock portfolios, such as an aggressive growth; growth and income; momentum; and value. The book will include a 30-day free subscription to Zacks Research Wizard software.

Author Biography

Kevin Matras is a vice president at Zacks Investment Research, where he is the fundamental stock screening and technical chart patterns expert. He heads the Research Wizard Division at Zacks, which focuses on stock screening and backtesting. Matras also runs the Chart Patterns Trader service, dedicated to chart pattern analysis, and the Options Trader service, which applies his stock-picking techniques through the use of options. He has been on television and quoted in magazines, and his stock-picking articles can be found on various financial sites. Matras can also be seen weekly on Zacks Roundtable Review videos along with his popular weekly video segments Screen of the Week and Know Your Options.

Table of Contents

Acknowledgments	p. xiii
Introduction	p. xv
The Importance of Screening and Backtesting	p. 1
Why Should I Use a Stock Screener?	p. 1
Backtesting!	p. 2
Identifying What Kind of Trader You Are	p. 5
What Kinds of Stocks Do You Want to Invest In?	p. 5
What Characteristics Do You Want Your Stocks to Have?	p. 6
What Do You Want Your Stocks to Do for You?	p. 7
Defining the Basic Trading Styles	p. 9
Momentum Style	p. 9
Aggressive Growth Style	p. 11
Value Style	p. 12
Growth and Income Style	p. 12
ôAll Styleö Style	p. 13
Technical Analysis	p. 14
Winning in Style	p. 14
Trading the Zacks Rank	p. 15
The Zacks Rank versus the Market	p. 15
About Len Zacks	p. 17
Calculating the Zacks Rank	p. 18
What the Rankings Mean	p. 20
Four Factors of the Zacks Rank	p. 24
Beyond the Zacks Rank	p. 27
Filtering the Zacks Rank	p. 27
How Many Stocks Are Right for You?	p. 32
How to Trade the Strategies	p. 33
Once a Month	p. 33
Once a Week	p. 35
Combining Holding Periods	p. 35
Winning Momentum Strategies	p. 37
Big Money	p. 37
Earnings Acceleration	p. 42
Increasing Earnings	p. 44
New Highs	p. 46
Using New Highs for Sector and Industry Analysis	p. 50
Summary	p. 53
Winning Aggressive Growth Strategies	p. 55
Small-Cap Growth	p. 55
All-Cap Growth	p. 61
Sizing Up the Markets	p. 64
Zacks Rank 5 or 4 to 1	p. 66
First Profit	p. 68
Summary	p. 70
Winning Value Strategies	p. 71
Value and Spark	p. 71
R-Squared Growth	p. 78
ROE for Your ROI	p. 82
Cash Is King	p. 83
Price to Cash Flow	p. 84
Statistical Analysis of P/CF, P/E, P/S, P/B, and PEG	p. 85
Combined Valuation Screen	p. 94
Summary	p. 95
Winning Growth and Income Strategies	p. 97
Growth and Income Winners	p. 97
Growth and Income Method 1	p. 102
Modifying Your Strategies	p. 103
Dividend Attraction	p. 104
Summary	p. 108
Winning ôAll Styleö Strategies (and Other Stuff That Works)	p. 109
Finding Growth and Value Stocks the Right Way	p. 110
Sales and Margins	p. 113
Relative Price Strength	p. 115
Broker Rating Upgrades	p. 118
New Analyst Coverage	p. 121
Top Stocks, Top Industries	p. 122
Combining Two Great Ways for Identifying the Best Sectors and Industries	p. 124
Earnings Yield	p. 125
Calculating Price Targets	p. 127
Summary	p. 129
Applying Technical Analysis	p. 131
Increasing Price and Volume	p. 132
TA and FA Winners	p. 133
3 Days Up, Price and Volume	p. 135
Moving Averages	p. 139
Summary	p. 148
Identifying Chart Patterns	p. 149
Symmetrical Triangles	p. 150
Ascending Triangles	p. 154
Descending Triangles	p. 158
Flags and Pennants	p. 162
Rectangles	p. 171
Wedges	p. 176
Head and Shoulders	p. 182
Inverted Head and Shoulders	p. 184
Screening for Chart Patterns Consolidation Areas	p. 192
The Pattern That Called the Market Top and Bottom in 2007 and 2009	p. 195
Summary	p. 198
The Right Tools for the Job	p. 199
A Good Ranking System	p. 200
Screeners and Backtesters	p. 201
Research Wizard: A Complete Research Tool	p. 204
Getting Started Screening and Backtesting	p. 207
Screening for Stocks	p. 207
Backtesting Your Screens	p. 211
Advanced Screening and Backtesting	p. 221
Summary	p. 233
Short Selling Strategies for Bear Markets	p. 235
Toxic Stocks	p. 236
Decreasing Earnings Two Years Out	p. 239
Summary	p. 241
Managing Risk and Cutting Losses	p. 243
Using Stop Losses	p. 243
Diversification and Portfolio Weighting	p. 245
Summary	p. 247
Know Your Options	p. 249
The Option Is Yours	p. 249
Buying Calls and Puts	p. 252
Straddles and Strangles	p. 258
Spreads	p. 260
Covered Call Writing	p. 262
Uncovered Call Writing	p. 267
Put Option Writing	p. 268
Stock Screening for Options	p. 273
Summary	p. 277
Investing in ETFs	p. 279
ETFs for Any Market and Any Direction	p. 279
Screening for the Right Sector and Industry ETFs	p. 281
Putting It All Together	p. 283
Disclaimer	p. 285
Free Trials and Other Resources	p. 287
Index	p. 289
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